Even if you take out som of these volatile items like food and energy, the sustained price increases we’ve had, it is actually getting passed through into how companies price their goods and services, and that’s where it gets extremely worrying because that suggests that even if energy prices, food prices come down, we could have inflation now in the system and I think that for advanced economies is worrying, for the developing countries, that’s hugely worrying.
- Volatile: unpredictable and can change suddenly
- have been sustained: continuing at the same level for long period of time
- inflation: continuing price rises
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