Business Environment by Pearson

Infl ation | 275

If this was to be the only cause of the recent commodity price in ation, it would not neces-

sarily be of such a concern to the policymakers, as it could then be expected that a slowing down

of overall growth would simultaneously reduce in ation. It would also re ect some recovery of

the drastically reduced bargaining power of workers and primary producers. But there are other,

more worrying, tendencies in operation, that suggest that the current global in ationary process

has other factors pushing it, which will not be so easily controlled.

Forces Behind the Rise

To understand this, it is necessary to examine the forces ...