In the past, the frequency of price adjustments was highest among energyrelated products and food, followed by goods; the prices of services were rarely adjusted. With energy-related products, food, and goods, the sales prices need to be adjusted frequently in response to changes in related imported commodities, materials, and input costs.
For perspective, I thought it might be useful to start with a review of economic conditions in midsummer. I will then go on to discuss various influences on the outlook, including my assessment of the likely effects of the storms, and the implications of these developments for monetary policy. Finally, I will lay out some of the major risks in the economic outlook.