World Bank warns emerging economies must tackle inflation

Emerging economies outstripping developed nations with the pace of their economic expansion must take more action to combat inflation or risk overheating, the influential World Bank has said.

Although growth is slowing in developing nations - it is expected to fall from 7.3% in 2010 to 6.3% for the next three years - it remains well ahead of developed economies. The high growth is fuelling inflation and the World Bank has warned if these economies do not act to combat price rises, it may harm them down the line, according to the BBC. Hans Timmer, director of development prospects at the bank, said: "While emerging markets have exited the post-financial crisis downtown, they are operating above capacity and are at risk of overheating, most notably in Asia and Latin America....