A disaggregated analysis of the sources of inflation during post-crisis period suggests that the increase in inflation was contributed by more than doubling of food price inflation to 11.8 per cent during 2008–12 (Table 5). This was, in turn, driven by sharp increase in the prices of protein-rich food items, reflecting higher demand for these items complicated by inadequate supply response.
We are in frequent contact with European authorities, and we will continue to monitor the situation closely and take every available step to protect the U.S. financial system and the economy. Let me now turn to a discussion of inflation. As we had anticipated, overall consumer price inflation moderated considerably over the course of 2011.