Slowing of inflation in venezuela.

Prices of cotton in Tanzania dropped by almost 40 percent due to high supply. However, some Tanzanian MP's advised that people not sell their cotton for less than 1,000/kilogram and instead make mattresses with it. However, some desperate cotton merchants have been selling their cotton fro as low as 300/kilogram to the black market. By August 24, 2012, 174,000 tonnes purchased and 145,000 tonnes delivered to ginneries.

High supply causes a movement along the supply line in this graph. This lowers prices to the consumer and encourages producers to stop producing more of the same goods. The equilibrium quantity has been increasing, therefore reducing equilibrium price. This signals producers to reduce production as their profit has been decreasing. Meanwhile consumer are signaled to begin buying the goods more as the prices for them are being lowered as the producers attempt to sell their products more cheaply.

G-7 call on oil-producing countries to increase their oil output in order to prevent high oil prices. The G-7 countries are prepared to call upon the International Energy Agency in order "to take appropriate action to ensure that the  market is fully and timely supplied." The IEA's countries supplied 60 million barrels of crude after the Libyan output was disrupted after the armed uprising. Oil prices have advanced 24 percent since reaching a 2012 low in June as stockpiles fell. U.S. authorities haven't contacted the IEA on the use of emergency oil supplies.  The U.S. has 727 million barrels of petroleum in reserve. Rising consumer prices have dented consumer confidence in gasoline, threatening to curb spending that accounts for 70 percent of the world's largest economy. The average price of a gallon of regular gasoline has increased by 23.5 cents this month.