Thomson Financial News - There have been recently signals that the disinflationary impact of low-cost countries on euro area import prices might be coming to an end due to increasing inflationary pressures in those countries. The recent increases in the prices of imports from low-cost countries might be interpreted as a sign that the downward impact from these countries is waning. Moreover, from a forward looking perspective, price pressures on soft commodities... appear to be a potential source of strong adverse relative price shocks. These developments clearly represent upside risks to price stability.
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