World Bank (left) and International Monetary Fund (right) headquarters, Washington DC

The International Monetary Fund says while soaring food and fuel prices may not hurt the global economy as much as officials had earlier feared, inflation still poses a danger for many countries.

The IMF issued its revised World Economic Outlook on Thursday, raising its growth forecast slightly from April.   

IMF Chief Economist Simon Johnson says the global economy will slow, but still grow at about a four-percent rate the rest of this year. However, he warned that developing and emerging economies are in danger. He said inflation was almost nine-percent in May and predicted it will remain high through 2009. Johnson says there is also reason to worry the global economy can no longer weather large shocks as well as it once did. He also told reporters in Washington that the U.S. economy "has nearly stalled." This past April, the IMF warned there was a 25-percent chance of a global recession.