US Treasury Secretary, Henry Paulson, said inflation is now the top priority for a number of global economies as soaring food and fuel prices continue to inflate on the cost of living.

Mr Paulson was speaking to the BBC on the eve of a meeting today, alongside Chancellor Alistair Darling, with over 40 British business leaders to discuss the UK economy.

The US Treasury Secretary said: “When you look around the world broadly, I think inflation is the issue that, as I go around the world, is getting the number one focus.

“When you look at not just oil prices, but food in areas where there’s poverty, this is a huge problem."

This morning, Mr Paulson repeated his concerns about food and fuel to the BBC's Today programme but said inflation in the US was "relatively contained".

He said the focus in the US was on oil prices, the equity market and housing, adding: "The housing correction is going to run its course and we shouldn't do anything to impede that."

Commenting on why the US economy was now in a downturn, Mr Paulson said: "There is no doubt that mistakes have been made. There were mistakes by the banks, by the regulators, by investors."

Speaking beside his US counterpart, Mr Darling acknowledged that oil, which reached a new record of nearly $146 a barrel today, is a "real problem" for Britain, adding: "We have got to ensure we can increase production of oil in the short-term.

However, Mr Darling failed to offer any suggestions of how supplies could be increased and whether oil would be discussed at today's meeting at 11 Downing Street.

Yesterday, lorry drivers attempted to bring London to a halt in protest at the high price of oil.

Mr Darling did disclose that today's discussions will include the Bank of England's £50 billion Special Liquidity Scheme. It was designed to encourage liquidity in the inter-bank lending market and in turn encourage lenders to pass on cheaper borrowing costs to first time house buyers and existing homeowners.

However, there is little evidence to suggest the scheme is having any positive effect on mortgage rates, as lenders continue to pull attractive mortgage rates from the market.

Mr Darling admitted that the scheme would "take some time to work its way through [the system]".

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