1.five With the exact same time, amplified commodity fees, this sort of as oil and food, on the primary fifty percent of 2008 contributed to a major grow in inflationary pressures throughout the global economy. This acted as a squeeze on the disposable profits of both equally organisations and individuals, and contributed towards the weakening in global demand. The reduction in commodity fees on the second fifty percent of 2008 and weaker activity on the global economy, are expected to lead to a sharp reduction in inflation on the coming months, with interest now turning towards the probable threat of deflation in 2009.
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