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Representatives of the Organization for Economic Co-operation and Development stated that currently inflation is a real danger for economies, especially when oil prices have registered a sharp increase. The organization's statement was presented shortly after oil increased by $6 to reach $128 a barrel on June 5, 2008.

"Ministers were concerned about inflationary pressures and indications inflationary expectations may be drifting upwards," mentioned OECD. Its representatives also outlined that a lot of attention should be accorded to fiscal balances. This is crucial due to the fact that inflationary pressures stay on a high mark.

It is worth mentioning that OECD presented its statement at the end of a meeting held for two days in Paris.

On June 5, the United States crude oil increased by $6.08, reaching a price of $128.38 a barrel, thus wiping out 2 days of losses, which were caused by worries regarding the fact that the increase in prices would have a negative impact on global demand. In the same day, the London Brent crude oil futures increased by $5.44 and reached $127.57 a barrel.

The increase in prices occurred shortly after the dollar fell against the European currency, leading to signals from Jean-Claude Trichet, President of European Central Bank, about this year's probable rate rises.

Ever since oil prices hit $100 mark back in January of 2008, they continued rising, reaching a record high of $135 on May 2008. Prices for crude oil increased as its supply could not keep in pace with the demand, while the economies of Asian countries continued to evolve. Another reason might be speculators, who invest in the market, hoping that oil prices will continue rising, while oil producers on purpose slowed their production in order to make more profits.

In the meantime, the Organization for Economic Co-operation and Development also stated that it considers that current increase in global food prices could be slowing.