Estimates by OECD staff 3 suggest that in the period from 1996 to 2005 the integration into world trade of non-OECD economies – particularly China and other Asian economies – reduced annual domestic inflation by an average of around 0.2 percentage point in both the United States and the euro area.
4 Over the last two to three years, however, globalisation has also been seen to have an effect on world demand. Economic development has brought about an increase in global consumption of food and other commodities, especially in China and other Asian countries.