By Burton Frierson and Mike Peacock

NEW YORK/LONDON (Reuters) - More signs emerged on Thursday that the world economy is on the ropes, as spiraling inflation and financial deterioration threaten global growth.

Asia, Europe and the Americas all face some combination of rising inflation and stagnating growth as record-high oil prices and the effects of a year-old financial crisis wreak havoc on developing countries and rich economies.

European Central Bank President Jean-Claude Trichet said euro zone inflation will remain above the ECB's desired level for longer than first expected, though last week's rate rise will help control it.

In the United States, data showed home foreclosures soared in June. Federal Reserve Chairman Ben Bernanke said officials are focused stabilizing financial markets.

"The financial turmoil is ongoing, and our efforts today are concentrated on helping the financial system return to more normal functioning," Bernanke said in testimony to Congress.

U.S. Treasury Secretary Henry Paulson, at the same Congressional hearing, said regulators need emergency authority to step in to limit temporary disruptions to markets.

Investors focused on the two largest U.S. mortgage finance companies, Fannie Mae and Freddie Mac, whose shares and debt plunged for a second day on fears they may not be able to get the capital they need to survive and continue to support the crumbling housing market.

The Bank of England, meanwhile, kept official rates at 5.0 percent despite inflation overshooting the UK's 2 percent target by a distance, suggesting it expects economic doldrums to rein in prices sooner or later.