This incomplete pass-through may derive from several government policies. Inflationtargeting
monetary policy might restrain the increase in inflation. Government price
administration for necessary goods and services from the Ministry of Commerce also holds a
rise in price levels. A government subsidy in energy also helps firms and households in costs of
production and living. Some measures to counter the global financial crisis also lower living
expenses. Macroeconomic stability is manageable, although the external macroeconomic
conditions channel adverse effects through changes in price level from exchange rate
fluctuations.