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In textbook markets for goods, price increases lead to a fall in demand and to substitution.
The corporate goods price index of the People's Bank of China jumped 8.3percentt last month compared with March 2003.
The 3.4percentt rise in the corporate goods price index matched economists' consensus forecast as well as the year-to-year rise in July, which was the largest since March 1981, the Bank of Japan said.
Japan's corporate goods price index rose 1.1percentt in May from a year earlier, the biggest increase in six and a half years, driven by rising prices for steel and oil.
Yet there is a subtext running through this debate and others like it, concerning persistent current account balances, currency moves, and the global transmission of asset and goods price changes that in a highly financially globalised world it may be necessary to build global monetary institutions.
The Crown Cork and Seal Company, a leading maker of metal food cans, said yesterday that it would lay off 1,150 employees and warned of lower second-quarter profit because of costs for raw goods, price competition and slower sales.
Similar(49)
The research focuses on falling goods prices.
Domestic final goods prices fell 1.7percentt.
And when many buyers are chasing few goods, prices rise.
Intermediate goods prices were up 7.7% year-over-year.
Consumer-price inflation is still negative, but the corporate-goods price index rose by 1.1% in the year to May, its largest increase since 1997.
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