In January 2015, energy prices dropped sharply by 19.8%, while the prices of non-energy commodities went down slightly by 3.2%. Food prices were down by 2.5%. Beverages declined by 2.3%. Raw materials went down by 1.2%, and fertilizers inched up by 0.9%. Metals and minerals decreased by 6.3%, but precious metals went up by 4.4%.
|The past procyclicality of fiscal policy in developing economies has been attributed to political economy pressures. Credible and well-designed institutional mechanisms can help mitigate these pressures and support fiscal discipline. In particular, fiscal rules, stabilization funds, and medium-term expenditure frameworks can help strengthen fiscal space and support countercyclical fiscal policy.|