Leaders pledge to limit fallout from soaring energy prices

Washington--Rising energy prices all over the world has become the issue of the world issue. With the less availability of energy rescources, it is becoming equally important to keep a check on the prices of various energy resources.

Finance officials from the world's biggest industrial powers have said soaring energy prices pose a risk to global economic activity and pledged to do all they can to limit the fallout.

The energy situation was a key agenda item in discussions among finance ministers and central bank presidents from the Group of Seven countries.

The United States, Japan, Germany, France, Britain, Italy and Canada make up the group.

"Higher energy prices ... have increased the risks to the outlook," the financial officials said in a joint statement.

The finance ministers called for countries and producers to boost investment to increase the supply of oil and they also urged countries to explore alternative sources of energy and improve conservation efforts.

The G-7 countries also welcomed a move by China in late July to allow its currency, the yuan, to rise slightly against the US dollar.

Yesterday, the Chinese announced they would allow their currency to move in value by a slightly greater amount against non-dollar currencies.

The United States welcomed the step, but analysts said it won't help narrow the United States' huge trade deficit with China.