G-8 Leaders Cite 'Strong Concerns' Over Oil, Food Prices

Rusutsu, Japan — World leaders warned that they have "strong concerns" about rising oil and food prices and the "serious strains" still facing the world's financial markets.

In one of the bleakest official statements ever issued by the G-8 leaders, the level of international pessimism about the immediate prospects for the economy was underlined.

The leaders of the world's largest economies warn that the current turmoil has "serious implications for the most vulnerable" and that the economy was far from recovering.

Concerns over the global economy have dominated discussions at this week's meeting in Japan.

Speaking after the statement was issued, Prime Minister Brown insisted that he was "not complacent."

"We face pressures on people's standard of living?? It's our job to help people through these difficult conditions," Mr. Brown said.

The statement — agreed by all the G-8 leaders — said: "The world economy is now facing uncertainty and downside risks persist.

"Among others, we express our strong concern about elevated commodity prices, especially of oil and food, since they pose a serious challenge to stable growth worldwide, have serious implications for the most vulnerable, and increase global inflationary pressure.

"We are determined to continuously take appropriate actions, individually and collectively."

There was also a warning that the turmoil on stock markets around the world was likely to continue.

The statement said: "Financial market conditions have improved somewhat in the past few months but serious strains still exist."

[Also at the summit, an embarrassed White House apologized for an "unfortunate mistake" — the distribution of less-than-flattering biography of the Italian premier, Silvio Berlusconi, the Associated Press reported yesterday. Still, the gaffe led to headlines in Italy.

The summary of Mr. Berlusconi was buried in a nearly inch-thick tome of background that the White House distributed at the summit of major economic powers. The press kit was handed out to the White House traveling press corps.

The biography described Mr. Berlusconi as one of the "most controversial leaders in the history of a country known for government corruption and vice."

It was just last month that Mr. Berlusconi welcomed Mr. Bush to Rome, calling him "a personal friend of mine and also a great friend of Italy." And Mr. Bush responded then: "You're right. We're good friends."]