First, the sharp drop in crude oil prices since the middle of 2014 has lowered prices of gasoline and other energy products, significantly restraining overall inflation. At about the same time, the foreign exchange value of the dollar strengthened, holding down prices of imported goods. But oil prices have stopped declining and indeed have risen from their low point earlier this year.
Price stability refers to the stability of the overall price level, measured, for example, by the price index for overall output (the chain-weighted price index of GDP) or for consumer goods and services (the Consumer Price Index). We often satisfy ourselves with the norm of low and stable BIS Review 23/1998  -2inflation.