CONTENTS
HOME
OUR WORK
Managing Risks,
Emerging Stronger
TUMULTUOUS
YEAR FOR THE
GLOBAL ECONOMY
MONETARY POLICY
AN UNPRECEDENTED CRISIS
INTEGRATED
APPROACH TO
FOSTER SAFETY AND
SOUNDNESS OF
FINANCIAL
INSTITUTIONS AND
FINANCIAL SYSTEM
BUILDING ON OUR
FUNDAMENTALS,
PREPARING FOR
THE UPTURN
ENHANCING
OPERATIONAL
CAPABILITIES AND
RESILIENCE
CURRENCY AND
PAYMENT SYSTEM

Easing of Inflationary Pressures

In tandem with falling commodity prices and weak demand, global inflation decelerated significantly since mid-2008. Headline consumer price index (CPI) inflation in the G3 economies peaked in July 2008, before tumbling to -0.1% in April 2009. In May, CPI inflation fell to -1.3% in the US, the lowest since 1950.

In Asia ex-Japan, CPI inflation fell from a peak of 7.1% in June 2008 to 0.4% in April 2009. This was mainly due to lower energy prices which, on average, accounted for two-thirds of the decline in inflation between Q3 and Q4 in 2008. Slower food price increases also contributed significantly to the reduction in inflation over this period.