At the same time, the additional demand for primary commodities by developing Asia, especially China and India, is putting upward pressure on global prices of these goods. During 2004-06, the region accounted for about 40 percent of the global growth in demand for oil and more than 70 percent of the growth in demand for copper and zinc.
The global commodities boom, which has been stimulated by the emergence of the Chinese and Indian economies on the international scene, has been an important offset to the deflationary effects from their low-priced goods and services.