In the inward direction, the euro area is affected by macro-financial conditions in the rest of the world through trade, exchange rate and financial channels. The relative prices of tradable goods (especially commodities and other non-differentiated goods) are determined by global supply and demand conditions.
Most obviously, the analysis of the global factors driving the persistent and large-scale fluctuations in oil prices has been a priority for all central banks in recent years. In addition, global excess capacity may have constrained pricing for various manufacturing sectors in recent years.