These technologies and the subsequent innovations they inspired have combined to
hold down inflation by putting pressure on wages, increasing productivity, and encouraging competition.
The higher exchange rate will
hold down inflation in the short term, though this effect will eventually wear off.
Yellen has said temporary factors have been
holding down inflation recently, such as drops in prices of cellphone plans and prescription drugs.
Not exact matches
Annual
inflation readings in March of last year were
held down by large declines in the price of cell phone service plans.
Yellen noted that the decline in oil prices «will likely
hold down overall
inflation in the near term.»
Though all measures of
inflation were coming
down as summer turned to fall and the economy clearly was slowing following a July brush with $ 4 - a-gallon gasoline, the FOMC decided to
hold the fed funds rate at 2 %, concluding that «the downside risks to growth and the upside risks to
inflation are both of significant concern to the committee.»
These actions include the deliberate attempt to
hold down interest rates to below
inflation.
In Australia, the factors
holding inflation down are expected to continue for a while yet.
For the past couple of years, underlying
inflation has been
held down by the lagged effects of the exchange rate appreciation that took place during 2002 and 2003, but the maximum impact from that source has now passed.
The increase in the CPI over the latest year, at 1.7 per cent, has been
held down by the effects of the health insurance rebate introduced in early 1999, which will cease to affect the measured
inflation rate early in 2000.
I'm getting tired of headlines that claim «Deficits Up,» when they're really
down or «Hyperinflation Coming,» when our slow - growth economy has been
holding inflation at historically low levels.
Low growth and
inflation expectations, coupled with insatiable global demand for income, have
held down long - term yields across the world.
Overall CPI
inflation was a more modest 1.6 per cent over the year,
held down by weakness in the prices of internationally tradable goods flowing from the appreciation of the currency.
The favourable near - term outlook for
inflation is being underpinned by continued help from the exchange rate in
holding down import prices.
At the same time, the overall
inflation rate is being
held down by the gradual pass - through of the exchange rate appreciation, with prices of tradable items in the CPI declining slightly in recent quarters.
For some time, underlying CPI
inflation has been
held down by the lagged effects of the exchange rate appreciation that took place during 2002 and 2003, while domestically sourced
inflation has been higher.
The headline CPI has been
held down by low oil prices; as this reverses due to the OPEC supply reduction agreement, headline
inflation will climb above the core rate.
Another factor in
holding down the 2011 deficit was that measured
inflation was low, there were no cost of living adjustments [COLAs], when assumptions expected 2.5 % or so.
«The temporary factors that have been
holding inflation down should dissipate in the months ahead, although recent exchange rate developments could affect this timing.»
Economists also cite retailers» lack of pricing power and still - tepid wage gains as factors keeping price pressures subdued, with the July results another sign
inflation may take longer to reach the central bank's goal even as it prepares to wind
down asset
holdings.