Thomson Financial News - Rises in energy and basic material prices have led to a deterioration in the terms and conditions of trade, thereby weakening income growth. We now, therefore, need to assess if and how a weakening of the income growth momentum, stemming from the deterioration of the terms and conditions of trade, will pose downside risks to domestic private demand ... how expectations on inflation and how the price-setting bahavior (of companies) hold the key to deciding how we should manage our monetary policy.