UN accuses richest countries of ‘imprudent gamble’ in inflation fight

Report says policies of high interest rates and austerity risk triggering global recession that will hit developing nations hardest

The interest rate rises and austerity the world's richest nations are using to fight sky-high inflation risk a painful global recession that would hurt developing countries most, the UN has warned.

In its annual trade and development report, the UN Conference on Trade and Development (Unctad) said a drive by major central banks to ramp up rates in response to soaring prices represented an imprudent gamble" that could dangerously backfire.