Soaring food prices to dent Asia's growth

Soaring food and fuel prices are threatening to derail growth in Asian economies, according to a report by the Asian Development Bank (ADB).

The bank has warned that if food and fuel prices continue to surge, economic growth in the region could be reduced by up to 1.5% this year.

According to the bank, domestic food prices have risen at an average of 10% in many Asian economies this year.

Oil prices have also surged because of the crisis in the Middle East.

The bank said that a combination of these two factors has been a major setback for growth in Asian economies.

While Asian economies have emerged strong from the global financial crisis, the rising cost of living has become a big concern in the region.

The ADB has warned that the recent surge in food price is threatening to push millions of Asians into extreme poverty.

According to the bank's study a 10% rise in domestic food prices may result in almost 64m people being pushed into extreme poverty. (read more)