Of course, the picture changed dramatically during the crisis period, but it is striking that in 2010–11, the pattern is quite similar, with the added contribution from rising non-food primary articles. We do appear to be in a situation in which capacity constraints are helping convert supply-side pressures into generalized inflation.
If, in fact, the contribution of investment spending to growth is declining, the constraints can only become more binding, further aggravating inflationary pressures if the growth momentum is kept going by other components of demand. I will end this section with a brief discussion on the monetary and fiscal policy trajectories during this period.