The rather protracted upward trend in services prices is, in this respect, one factor to be closely monitored. In addition, prospects for price stability depend largely on wage moderation. It is a mistake to believe that high wage rises per se will increase aggregate demand in real terms. On the contrary, excessive wage claims will increase costs and create inflationary pressures.
[1] I would like to draw your attention to four of these developments. The first is the reversal of globalisation. Over recent decades, international trade increased very significantly relative to the size of the global economy (Graph 4). Production became increasingly integrated across borders and this lowered costs and made supply very flexible.