Here are a few other questions that researchers could usefully address: First, how should monetary policy deal with increases in commodity prices that are not only large but potentially persistent? Second, does the link between global growth and commodity prices imply a role for global slack, along with domestic slack, in the Phillips curve?
Hence domestic corporate goods prices are likely to continue a gradual downtrend, although the pace of decline will slow with the halt in the decline in import prices gradually having effects. Meanwhile, consumer prices are projected to continue falling at the current moderate pace on a yearon-year basis.