The decline in commodity prices has not been confined to industrial commodities. Global food prices, which along with oil prices were responsible for part of the inflation pressures experienced in the recent period, have also declined in the past few months.
Spillovers to other advanced-economy financial markets included stock price declines, significant increases in sovereign yields, higher overnight interest swap rates in the United Kingdom and euro area, and rising credit spreads in some countries. Spillovers to EME asset markets were significantly stronger. Inflows to EME investment funds reversed sharply, EME currencies depreciated, and other asset prices declined. 16 II.