Rise in commodity prices more permanent: UNDP

ISTANBUL (Reuters) - The head of the United Nations Development Programme Kemal Dervis said on Thursday the recent rise in food and oil prices was deeper and more permanent than changes in the past.

"The situation regarding commodity prices is serious now. The change is deeper and more permanent than in the past," Dervis told a conference in Istanbul.

He said central banks should allow for measured inflation rises, but permanent inflationary expectations may be caused by rising commodity prices if fiscal and monetary policy were loosened too much.

Demand from emerging markets such as India and China has pushed up food and energy costs, stoking inflation pressures and putting central banks on edge.

Dervis also said governments should strengthen social policies to protect the poor from sharp rises in food prices.

(Editing by Christopher Johnson)