-->Oct. 7 (Bloomberg) -- Commodity prices measured by the Reuters CRB index rose to a 23-year high as oil and metal producers struggle to keep pace with increasing world demand for raw materials.

``We're seeing a restrained approach to adding new supply to the market by the companies, and demand is picking up significantly,'' Evy Hambro, who helps manage Merrill Lynch & Co.'s $6.3 billion World Mining Trust, said in an interview in London. Supply ``deficits are growing, and that's obviously very supportive for commodity prices.''

The Commodity Research Bureau index of 17 futures contracts rose as much as 0.46 to 286.22, the highest since May 1981. Crude oil rose to a record $53 a barrel in New York after U.S. inventories increased less than expected. Copper and aluminum reached nine-year highs in London on concern manufacturers will deplete shrinking metal inventories.

The world economy may expand by 5 percent this year, the fastest pace in three decades, according to the International Monetary Fund. The Group of Seven countries, which represents about two-thirds of the world's economic output, on Oct. 3 called for oil producers to pump more to curb the rally in prices, which may hurt growth.