In 1997 upward pressure on consumer prices increased , not least as a result of a rise in import prices .

Filipino journalist Ricky Carandang points to another reason for the rising food prices

In the second half of the year , however , energy prices were the main factor behind the increase in overall inflation , reflecting not only base effects but also some upward pressure on world oil prices towards the end of the year .

The rise in inflation over recent months mostly reflects higher energy prices .

Customers meanwhile poured complaints on service providers upping prices for their data service packages.

However , the downward movement was interrupted by an increase in energy taxation in some countries , and the general rise in energy prices also led to a slight rise in electricity prices in late 2000 .

Thereafter , import prices are expected to recover moderately as both commodity prices and competitors prices pick up slightly worldwide .

The reactions of the financial markets to the most recent surge in oil prices are compared with those of previous episodes of high oil prices .

However , there was a slight rise in the quoted shares issuance of non financial corporations in the second half of the year .

The rise in export prices was partly accounted for by the increase in costs associated with higher oil prices .

Most of the rise in import prices was a result of the higher price of oil .

Oil prices have risen strongly in recent months , and food prices have increased substantially , reflecting higher global demand .

The moderation in economic activity observed since mid 2004 is partly related to the rise in oil prices .

For example , as equity prices rise , share owning households become wealthier and may choose to spend more on consumption .

Furthermore , geopolitical tensions heightened in the second half of 2002 , leading to a sharp increase in oil prices .

Food prices played an important role in the rise in overall HICP inflation in the second half of 2007 . This box considers the potential factors driving movements in food price inflation in the euro area and discusses the outlook .

On the one hand , generally moderate wage developments contributed to the sustained low increase in services prices .

Upside risks continued to prevail , in particular with regard to potential second round effects in wage and price setting resulting from higher oil prices .

Consumer prices rebounded temporarily in the third quarter of the year owing to the negative effects of hurricane related disruptions and the prolonged rise in energy prices .

In an effort to counter rising food prices resulting from hurricane related shortages, the Cuban government has frozen food prices.

The modest rate of inflation is associated with the compression of profit margins , lower energy prices and a weak development in prices of transport and some meat products .

However , other indicators pointed to some resilience of growth in private consumption to higher oil prices .

At the same time , upward pressures on prices came from the continued rise in oil prices and from the depreciation of the euro exchange rate in an environment where the economic outlook started to brighten up .

The strong performance of the global economy in the course of 2000 was increasingly affected by the continued increase in oil prices .

Readers may recall that an increase the price of minibuses sparked riots and protest in February 2008.

Turning to a sectoral breakdown , the increase in euro area stock prices in 2005 was most noticeable in the oil and gas sectors ( in line with the strong growth of reported earnings resulting , to a large extent , from oil price developments ) , and in the financial sector . Of the ten economic sectors of the Dow Jones EURO STOXX index , only the ECB Annual Report 2005

and , second , the marked decline in commodity prices , which may contribute to a further rise in real incomes .

High and rising oil prices in particular appear to have weighed on demand and confidence .

In addition to energy , unprocessed food prices also contributed to a rise in the headline inflation rate in the course of 2000 , although to a much lesser extent .

The impact of the rise in oil prices on inflation was also reflected in the revisions of inflation expectations in the course of 2005 .

Over the summer , however , the appreciation of the US dollar and increases in administered prices caused an upturn in import , producer and consumer price inflation .

In 2000 most of the pronounced increase was caused by an unanticipated rise in import prices , mainly due to exchange rate and oil price developments .

In particular, we understood that the rapid run up of house prices, coupled with the extension of leverage, posed macroeconomic dangers.

The rise in oil prices contributed to a moderate increase in inflation rates in many countries , largely as a result of developments in energy related price components .

Looking back at the strong stock price rebound in 2009 , it should be recalled that it started from depressed levels .

taxes and administered prices . Moreover , the Governing Council emphasised that continued vigilance was required with regard to potential second round effects in wage and price setting that could result from higher oil prices .

Nevertheless , inflation developments in the last quarter of the year were essentially driven by month on month price dynamics , owing to the surge in energy prices and also processed food prices .

The oil dependent trade deficits recorded by the CIS declined sharply after the surge in oil prices in 1999 and 2000 .

In part , these price increases reflected temporary factors , such as adverse weather conditions in some major agricultural commodity exporting countries which affected the global supply of these commodities . High energy prices also increased the cost of energy intensive inputs for agriculture , such as fertiliser , fuel for transport and machinery .

Although unfavourable factors , such as a prolonged and steep increase in oil prices , seem to have dampened growth somewhat in the second half of 2000 , the rise in GDP for the year as a whole was the largest since 1990 .

The region benefited from a highly favourable external environment and higher commodity prices , which allowed the reduction of financial vulnerabilities .

This notwithstanding , the rise in indebtedness has increased households exposure to changes in interest rates , income and asset prices .

In addition , international food prices were pushed up by the strong rise in the global demand for foodstuffs resulting from the changes in food consumption patterns in many developing economies , as well as from the emergence of new sources of demand for some agricultural commodities , particularly for the production of biofuels . As these latter ( percentage points )

Manufacturers of food related items experienced strong price increases in the third quarter of the year in the wake of surging prices for some agricultural commodities in world markets ( see Box 5 ) .

After a period of consolidation , the debt ratio of nonfinancial corporations is currently higher than that recorded at the previous peak in 2003 , which had followed a sharp increase in debt in the second half of the 1990s .