But meanwhile, consumer spending in both America and Britain is still growing vigorously, at an annual rate of around 4%.

ECONOMIST: A monetary tug-of-war

In contrast to the supply shocks of the 1970s, much of the recent run-up in prices has been caused by rapidly rising demand: oil is dear in part because some economies, especially America's and China's, have been growing vigorously.

ECONOMIST: Running out of puff? | The

Chinese imports of American goods continue to grow vigorously, but the volume in the other direction is growing ever faster.

ECONOMIST: America and China