§ What is the effect of this? When a productive machine is working at such brimful capacity, it becomes easier not merely to obtain higher money incomes but also to pass on in higher prices the increased costs which result. Both costs and prices have been gradually edging upwards, reflecting the continuing rise in personal incomes. This leads to social strains at home; and abroad it threatens the competitive power of our exports in a world market where prices are becoming increasingly keener. For example, it is significant that the index of our export prices has risen by 3 per cent. since the end of last year.