The economy moved through a period of slower growth in 1996 during which
inflationary pressures eased significantly.
Producer price data suggest that upstream
inflationary pressures eased in the March quarter; this followed three quarters of strong growth in a broad range of output prices.
Other data last week had painted a somewhat mixed view of the economy at the start of the year, with
inflationary pressures easing — possibly pointing to softening activity — but better - than - expected import and export growth.
Not exact matches
The significant decline in oil prices also helped bolster growth around the world and
ease inflationary pressures.
When aggregate demand in the economy is weak, for example,
inflationary pressures are likely to be diminishing and monetary policy can be
eased, which will give a short - term stimulus to economic activity.
Unless central banks move beyond quantitative
easing and actually print money to directly finance consumption or public investment, debt tends to be disinflationary, as high debt levels can calcify potential future growth and
inflationary pressures.
Nonetheless, given the tentative signs of
easing in domestic demand
pressures, the Board judged that there was a case to hold the cash rate steady for the time being, to allow further time to assess the strength of
inflationary pressures.
This group also concludes that central bank quantitative
easing (which began in 2009) is finally beginning to create
inflationary pressures in the form of increased wages and rising industrial commodity prices.
While price
pressures eased in July,
inflationary pressures could pick up again if demand continues to outstrip supply.»
«We believe that underlying
inflationary pressures will gradually
ease due to appreciable excess capacity, extended muted economic activity, and ongoing wage moderation amid substantial labour market slack,» he predicted.
For example, if
inflationary pressures were high and interest rates were moving up, the Fed could not predictably lower the Fed Funds rate by
easing monetary policy.
Rising rents, qualitative
easing (the printing of money), federal spending outpacing revenue, and a national debt equal to roughly 10 percent of Gross Domestic Product are all raising
inflationary pressures.