In part, this situation reflects the fact that the costs of inaction are not borne immediately, making it easy to postpone the necessary adjustment. At the same time, the longer that adjustment is postponed, the greater the costs of failing to act today will be.
What is more, the employment and income situation, particularly the wage situation, is becoming more severe. The expected recovery in consumption is, therefore, bound to be modest. B. Prices  The three key factors likely to shape the direction of prices for the time being are (1) the aggregate supply and demand balance; (2) medium- to long-term inflation expectations; and (3) international commodity prices.