In terms of external factors, as in prior years, low inflation was maintained owing to low prices of primary products, as well as to generally low headline inflation in the international environment. The greatest contribution to inflation came from petroleum products, fresh meat, travel packages and administered prices (chiefly cigarettes and electricity).
Global economic activity rebounded rapidly during the initial stages of the recovery, buoyed by a bounceback in global trade and inventory restocking around the world. Activity abroad has slowed more recently and seems to be settling on a sustainable path that still should result in rising demand for U.S. exports.