Surveys and financial market indicators for inflation expectations have been overall in line with the ECB’s definition of price stability.

20. Notes the Commission Communication on challenges in commodity markets and raw materials and welcomes the Commission's attention to the issue thus far; asks the Commission to establish better information flows providing timely and quality data on market developments, taking into account the issue of stock dislocation; stresses, however, that improved information flows alone are not a solution to addressing volatility in markets; believes a stronger approach to tackling the issue may be necessary, particularly with regard to increasing transparency in commodity markets; highlights the problems faced by farmers at times of extreme market and price volatilit ...[+++]y; draws attention to the difficulties that farmers encounter in attempting to forward-plan at times of extreme volatility; urges the Commission to introduce effective and robust measures to address volatility in agricultural markets as a matter of urgency; believes that this will be a key determinant in ensuring that production is maintained in the European Union;

L. whereas price volatility in agricultural markets is a permanent feature, but has recently increased dramatically owing to a combination of factors – including extreme weather conditions, energy prices, speculation and demand changes – and is expected to increase further, as predicted by both the OECD and the FAO, leading to extreme booms and busts in agricultural commodity prices on European markets, whereas between 2006 and 2008, the prices of several commodities rose considerably, some by as much as 180%, as was the case for grains; whereas dairy prices collapsed in 2009, falling on average by 40%, and whereas other products such as cereals, fruit and ...[+++]vegetables, olive oil have also been affected, and extreme fluctuations in prices have had detrimental consequences for producers and have not always benefited consumers,

L. whereas price volatility in agricultural markets is a permanent feature, but has recently increased dramatically owing to a combination of factors – including extreme weather conditions, energy prices, speculation and demand changes – and is expected to increase further, as predicted by both the OECD and the FAO, leading to extreme booms and busts in agricultural commodity prices on European markets, whereas between 2006 and 2008, the prices of several commodities rose considerably, some by as much as 180%, as was the case for grains; whereas dairy prices collapsed in 2009, falling on average by 40%, and whereas other products such ...[+++]as cereals, fruit and vegetables, olive oil have also been affected, and extreme fluctuations in prices have had detrimental consequences for producers and have not always benefited consumers,

The proposed reduction of the intervention price for rice by 50% will narrow the gap between EU prices and world prices and thereby further liberalise the EU rice market, but it would be advisable to set direct payments at a level that would compensate producers fully for the reduction in institutional prices, thus keeping the price and market guarantee and, therefore, the profitability of growing, unchanged.

1. To the extent necessary to enable the products listed in Article 1(1)(a),(c) and (d) to be exported without further processing or in the form of goods listed in Annex V, on the basis of world market quotations or prices in the case of products listed in Article 1(1)(a), (c) and (d), and within the limits resulting from agreements concluded in accordance with Article 300 of the Treaty, the difference between such quotations or prices and prices in the Community may be covered by export refunds.