The US, Japan, China and the UK were growing at above trend levels in 2004. This year growth has slowed slightly due to increasing oil prices but growth is still relatively strong in the US, China, and the UK and in other non- Japan Asian economies. Some emerging economies are also growing relatively strongly. While the oil price has risen there does not appear to be sustained global inflation simply because the dependency on oil is less than it was; oil revenues are recycled more quickly now; monetary policy is more appropriate and there is no spiral effects because of increased wage demands on the back of oil price increases. Consequently inflation is more subdued
