Non Encouraging 2008 Crude Forecast: UN-ESCAP

A decline in industrial growth will drop the crude oil prices in the international market while food prices will remain as high as at the name leaping inflation in 2008, stated the UN Economic and Social Survey of Asia and the Pacific (UNESCAP).

However, the food prices are to keep at high level, calling greater inflationary risks because food accounts for a substantial share of consumer spending.

Due to unwinding of large US imbalances with the rest of the world and the turmoil in global financial markets major currency in the Asian region, including rupee, would continue to appreciate against the dollar.