"Inflation remains under control, despite soaring energy costs," said US Treasury Secretary John Snow after meeting with other G8 finance chiefs in Saint Petersburg, Russia.

"Inflation remains contained despite continued pressure from high energy prices and the US budget deficit has improved substantially, buoyed by sharply improved receipts," he said in a statement.

Snow's comments appeared to contradict the position of the US Federal Reserve, which has warned of inlationary pressures.

He expressed confidence that "global economic growth remains impressively strong overall. Although relative performance continues to be uneven, we are pleased to see that recoveries are strengthening in Japan and in Europe," he said.

Risks to global growth include protectionism and high energy prices, he said.