Examples of using Second-round effects in English and their translations into Hungarian
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Although energy prices rose rapidly, core inflation declined, indicating that the oil pricehike did not have any significant second-round effects.
By acting in a firm and timely manner, it will prevent second-round effects and ensure that risks to price stability over the medium term do not materialise.
Such developments would pose upward risks to price stability.It is therefore crucial that all parties concerned meet their responsibilities and that second-round effects be avoided.
Although this is unlikely to fuel second-round effects due to persistently weak demand and slack in the labour market, meeting the inflation target is expected to be delayed.
Underlying inflation trends remained relatively stable, however,suggesting that second-round effects were fairly wellcontained( see Chart 2).
Over the medium term the second-round effects resulting from buoyant domestic demand, increase in wage costs, as well as higher commodity prices will point to the increase in domestic core inflation.
Against this background,the Governing Council remains committed to preventing second-round effects and the materialisation of upside risks to price stability over the medium term.
With the pick-up in domestic demand and reflecting the increase in wages, core inflation is likely to rise gradually; however,this process may slow due to the second-round effects of declining commodity prices.
The Governing Council remains strongly committed to preventing second-round effects and the materialisation of upside risks to price stability over the medium term.
As potential second-round effects on wage and price-setting threatened to adversely affect medium-term price developments, this situation required a forceful monetary policy response.
By acting in a firm and timely manner on the basis of its assessment,the Governing Council will ensure that second-round effects and risks to price stability over the medium term do not materialise.
Transmission of oil price changes to euro area inflation Turning to the impact of the oil price increase on euro area prices, it is helpful to distinguish between direct,indirect and second-round effects.
Based on data becoming available previously, the risk of second-round effects taking hold in the wake of the change in inflation expectations still remains after increasing in recent months.
In this context it is important to emphasise that the staff projections are based on the key assumption that recent oil and food pricedynamics and their impact on HICP inflation will not have broadly-based second-round effects on wage-setting behaviour.
This action underlines theGoverning Council's strong determination to prevent second-round effects and maintain longer-term inflation expectations firmly anchored in line with price stability.
Risks to this scenario remain on the upside and include further rises in oil prices, additional increases in administered prices and indirect taxes, as well as-- more fundamentally--potential second-round effects in wage and price-setting behaviour.
In case the alternative scenario assuming more considerable second-round effects of the cost shocks, inflation expectations might move away from the target, resulting in a significantly lower path for nominal wage growth.
We are also calling on the price-setters in general- corporate businesses, the production sector, retail businesses- to incorporate the fact that we will deliver price stability over the medium term so thatwe do not have second-round effects in this domain.
Accordingly, the Governing Council will monitor very closely all developments.It remains committed to preventing second-round effects and the materialisation of upside risks to price stability over the medium term.
Finally, second-round effects refer to the possibility that, in addition to the direct and indirect effects mentioned above, an oil price shock may have a further impact on inflation because it might result in higher wage claims to compensate for the decline in real income.
At this juncture,it is imperative that all parties concerned meet their responsibilities and that second-round effects on wage and price-setting stemming from current inflation rates be avoided.
Risks to this outlook for price developments remain on the upside and include further rises in oil prices, a pass-through of oil prices into consumer prices stronger than currently envisaged, additional increases in administered prices and indirect taxes, and-- more fundamentally--potential second-round effects on wage and price-setting behaviour.
Typically, besides the expectations concerning the persistence of the shock, the occurrence of second-round effects depends on whether the economic context, in particular the labour market situation, encourages higher wage claims.
The firm anchoring of medium to longer-term inflation expectations is of the highest priority. The Governing Council believes that the current monetary policy stance will contribute to achieving this objective,and remains strongly committed to preventing second-round effects and the materialisation of upside risks to price stability over the medium term.
On the other hand, the alternative scenario assuming persistently low cost environment and increasing second-round effects may lead to lower inflation and stronger economic growth, which may justify even looser monetary conditions than the baseline projection.
The firm anchoring of medium to longer-term inflation expectations is of the highest priority to the Governing Council and there is certainly no room for complacency in this regard. The Governing Council believes that the current monetary policy stance will contribute to achieving this objective,and remains strongly committed to preventing second-round effects and the materialisation of upside risks to price stability over the medium term.
As these increases were larger and lasted longer than previously foreseen,the risks of indirect and second-round effects on consumer price inflation via wage-setting rose significantly in the context of robust economic growth.
The Governing Council believes that the current monetary policy stance will contribute to achieving this objective andremains strongly committed to preventing second-round effects and the materialisation of upside risks to price stability over the medium term.