Inflation Rate Still Low in Spite of Economic Boom

The economic upswing remained unbroken throughout the spring. The rising tendency of exports and industrial production was not as pronounced as in the beginning of the year, but the sales of retail trade made a jump forward. In spite of the good economic situation the inflationrate declined a bit due to the slump in the dollar, which brought import prices down. The rise in oil prices as a consequence of the conflict in the Near-East might put an end to the favourable price development. The economic development on the world market during the summer has been marked by the economic downturn in the U. S., the decline in the dollar exchange rate as well as the conflict over Kuwait with its consequences for the oilprice. On the domestic markets demand is on the increase ever since last fall. Demand from abroad has slowed down, however, since the turn of the year.