In developing countries, moreover, where food is a big share of the basic consumption basket, the rise in food prices may present a particular challenge. While slower growth in global demand, led by the major countries, and possible supply responses may ease pressure on some commodity prices, most of them remain very high at this stage.
It is conceivable, therefore, that a somewhat less favourable short term relationship between economic growth and inflation than the world enjoyed over the past decade might be experienced for a time. This outcome, were it to occur, would make for a more challenging environment for macroeconomic policy makers.