While monetary policy aims to directly stabilize the economy, fiscal policy aims not only to stimulate the economy as a whole but also to implement a structural policy through such channels as budgetary allocations.
As one would expect with such a rise in oil prices, consumer price inflation increased in most of the major industrialised economies. For example, overall inflation in the United States accelerated from 1,7 percent in March 2004 to 3,3 percent in June 2004. These increases are, however, coming from low levels.