The global threat of inflation will take centre stage at this weekend's meeting of Group of Eight (G8) finance ministers, but measures to tackle it look highly elusive.

Despite a broad agreement that ever-rising oil and commodity prices are inducing inflation worldwide, hurting many G8 economies as well as the other countries, officials said coordinated G8 action to tackle them is unlikely.

Interest rate hikes - the orthodox remedy for inflation - could be part of the solution, but they won't feature at the meeting, which will not be attended by central bank governors.

Furthermore, with many G8 economies slowing after the market turmoil since last year, albeit to different degrees, and with strains in European and U.S. money markets persisting, tightening credit could be tricky.

Inflation has become the dominant issue as the price of oil and many grains has skyrocketed, triggering street protests around the globe.

"Looking at the outlook for the economy, there is less pessimism about growth compared with two months ago but more attention to rises in oil prices," a G8 source told Reuters.

"Oil and food prices raise inflationary pressures in importing countries but also they could have an inflationary effect on exporters because they raise liquidity in their economy," the source added.

But G8 officials say they have limited ammunition to counter the recent rise in energy, grains and other commodity prices, which has been driven by increasing demand from developing countries.

Indeed, since the G8 finance ministers said in a statement last May in Germany that they remained concerned about high and volatile energy prices, the price of crude oil has more than doubled to nearly $140 from around $65.

Disagreements on specific policy steps also remain.

French Economy Minister Christine Lagarde called on the G8 to act together to bring oil prices to a more "bearable" level.

But that proposal met a cool response from Canada, a net exporter of oil. Canadian Finance Minister Jim Flaherty said earlier this week that he believed markets and not governments should set oil prices.

Russia, the world's second-biggest oil exporter, would also be unlikely to agree to steps aimed at cutting prices.

Rifts may be even bigger at the "outreach" meeting where the G8 members have invited representatives from China, Brazil, South Korea, Australia, Thailand and South Africa.

Some G8 countries have called for a cut in fuel subsidies in developing countries such as China and India to help reduce oil demand, but many developing countries are reluctant because of public anger about rising fuel prices.

While inflation overshadows many other issues, the finance ministers are also likely to discuss the health of the banking system in the United States and Europe.

The head of the Financial Stability Forum, Italian central bank head Mario Draghi, is expected to brief ministers on how much progress has been made on the 100-day action plan that G7 policy makers sought to implement after their meeting in April.

Currencies will not be mentioned in the statement as central bankers are not taking part in the meeting. But G8 officials have said there could be discussion on currencies.