Unexpected further declines in commodity prices could put downward pressure on inflation, while upside risks to price stability could materialise particularly if the recent fall in commodity prices were to reverse or if domestic price pressures turn out to be stronger than assumed. It is therefore crucial that price and wage-setters fully live up to their responsibilities.
Recently, China stressed once again to put maintaining stable and rapid economic growth and curbing excessive price hikes  2  BIS Review 109/2008  as the top priority of macroeconomic management, and put reining in inflation high on its agenda.