1.five With the exact time, enhanced commodity rates, this sort of as oil and food stuff, in the initially fifty percent of 2008 contributed to the critical enhance in inflationary pressures through the world-wide economic climate. This acted for a squeeze about the disposable cash flow of the two establishments and shoppers, and contributed towards the weakening in world-wide need. The reduction in commodity rates in the second fifty percent of 2008 and weaker activity in the world-wide economic climate, are envisioned to guide to the sharp reduction in inflation in the coming months, with awareness now turning towards the future risk of deflation in 2009.
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