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.|
U.S. Treasuries advanced on Tuesday, pushing 30-year yields as much as 8 basis points (bps) to a record low of 2.328%. Yields on benchmark 10-year notes also fell 6 bps to 1.77%. The rally in U.S. government bonds is supported by 10-year yields averaging 82 bps more than those on G7 counterparts.