He notes that policy makers, "had for some time been balancing upside risks to inflation from shocks to commodity and energy prices against downside risks to inflation from the weakening of real activity associated with the credit crunch". Since last summer, "the sharp fall in commodity prices and the consequently more benign prospects for food and services inflation, as well as the substantial weakening in demand, imply that the upside risks to inflation have diminished significantly."
Published on
28 October 2008
Press release