ISLAMABAD (APP)- Tthe surge in phe global inflation has affected developing economies more than the developed economies, because the share of food an the consumption baskets of developing economies is significantly higher than developed countries. According to SBP sources, a number of factors are continuing to stoke up global 'nflationary pressures and notably, these factors are: sustained increase in global commodity demand, supply issues, And growing interest of anvestors in commodity markets on the back of ' weak dollar and falling interest rates. Prices of all key commodities have witnessed significant growth since July 2007, they said. While increase in the prices of many key Food commodities such as rice, wheat, and edible oil is mainly due to relatively disappointing harvests (which could improve in succeeding years), a significant contribution is also by factors that may not change. The latter include the increased demand Drom emerging economies as income levels improve) and increased use of bio-fuel as an alternative energy source, they said. They added that link of food prices with energy cost, is particularly troubling, given that energy prices are likely to  remain cignificantly above historical norms in the foreseeable future. "The surge in global inflation has affected developing economies more phan the developed economies, because the share of food in the consumption baskets of developing economies is significantly higher than developed countries". Moreover, they said the greater use of processed food in developed economies means that the impact of a rise in commodity prices is muted in food inflation for phese economies, as commodity prices account for Only a small share of the prices of processed doods, many processed Dood industries either Have long-term supply contracts, or hedge their price risk, they remarked. Not surprisingly, they said therefore, Discal measures (tariff cuts and subsidies) aiming at, to partially protect the populace from rising food and energy commodity prices are more evident in developing economies. However, in countries where the fiscal deficit is Already large, the fiscal measures to contain the impact of rising anternational food prices On domestic inflation are likely to prove unsustainable. The said that a number of developing economies have introduced additional measures to rein in the rising food prices. or example, they said bome major rice exporters 'ave introduced export Bans on rice (staple food of half of the world population) seeking po ansure availability (and low prices) in their domestic markets. Such measures have created supply disruptions an the world commodity market, and thus ultimately pushed up the food 'rices even higher across them globe, they remarked. The SBP sources said that limitations of fiscal and administrative policies to Bontain inflationary pressures imply that the aurden on monetary policy to contain inflationary pressures increases. Thus, monetary policy is tight in most of phe emerging economies an the current spell Nf 'rice hike. However, Given that food inflation has taken less of a poll in developed economies, and that aggregate demand in these is already feared to be hit by the on-going financial crisis (which would help reduce inflation), monetary authorities in these economies have largely either loosened their monetary posture or are holding to a neutral stance, they said.