Africa needs adequate policies to counter the soaring inflation rates caused by an influx of capital as a result of higher prices of the continent's exports, Algerian Finance Minister Karim Djoudi said on Wednesday.

"The hike of raw material prices has caused to Africa's exporting countries an influx of capital that are potential inflation generators and appropriate policies are required to counter and limit its impact," the official APS news agency quoted Djoudi as saying during a conference of the African Central Banks held in Algiers.

In a more and more global world, which is marked by movement of capital, Africa must set up its anti-inflation policies," Djoudi explained. "These soaring inflation rates must be countered by adequate monetary policies of the central banks."

Citing the case of Algeria, the finance minister said the North African nation managed to implement public policies that improved the living standards of the population, adding that "such policies include measures that absorb potential shock caused by the fluctuation in widely consumed raw materials."

In 2011, inflation in Algeria hit 4.5 percent, comparing to 3.9 percent in 2010.

The Algerian finance official cautioned that high inflation rates can be an obstacle for African countries to achieve their development goals.