The silver lining to the cloud is the improvement in public finances and the decline in international crude prices, and consequently in domestic prices of petroleum products. Excluding the beneficial effect of this softening of fuel prices results in inflation exceeding the headline in terms of wholesale prices.
Integrated capital markets play a far larger role – especially integrated equity markets, which smooth out around 40% of the cyclical fluctuations among the US federal states. Another share of around 25% is cushioned via the credit markets.