G8 worries on inflation growing - Italy econ min

ST PETERSBURG, Russia, June 10 (Reuters) Concerns about inflation among the Group of Eight economic powers has increased over the last year, Italian Economy Minister Tommaso Padoa-Schioppa said on Saturday.

Speaking to reporters after the G8 meeting, Padoa-Schioppa said the level of concern remained unchanged over intractible problems such as high oil prices and the U.S. current account deficit.

''I didn't notice any significant change in the degrees of concern and optimism,'' over these risks to world growth, he said.

''However it's true that worry about inflation has increased compared with a year ago.'' The G8 ''recognised that the problem of high oil prices will not be quickly resolved,'' he said, adding that financial instability also remained a threat to world growth.

''There is a permanent risk of financial instability, the system is so interconnected that attention on this is still very high.'' REUTERS MP BD1954