one.5 Within the same exact time, elevated commodity fees, these kinds of as oil and food items, with the earliest half of 2008 contributed to a major strengthen in inflationary pressures across the world-wide market. This acted as the squeeze to the disposable salary of the two organisations and people, and contributed to your weakening in international demand. The reduction in commodity price levels during the second half of 2008 and weaker exercise around the worldwide economic climate, are predicted to lead into a sharp reduction in inflation around the coming months, with attention now turning for the opportunity threat of deflation in 2009.
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