There is a significant inflationary cycle headed toward us and that is going to be sending bond prices tumbling.

The inflation rate has fallen recently, but still stands at more than 60 percent a year, marking Turkey as one of the few countries in the world that has not managed to break an inflationary cycle.

High levels of job growth suggest that wages could be forced upward, eventually setting off an inflationary cycle.

The increase in wealth experienced by Spain coincided with a major inflationary cycle both within Spain and Europe, known as price revolution.

It holds that there is an unemployment rate below which labor shortages will create upward pressure on wages, kicking off an inflationary cycle.

Another goal has been to forestall an inflationary cycle.

"It's the first sign of a break in the inflationary cycle," Mr. Ore said.

An inflationary cycle of double-digit dimensions had been set in motion, and it would take Americans through a dizzying decade that seemed beyond the control of the country's leadership.

The bank has been zealously watching for so-called second-round effects from higher oil prices, since these can lead to an inflationary cycle.

Policymakers in Beijing are desperately trying to figure out how to prevent growth stalling without pushing the economy into yet another inflationary cycle.