§ But, in addition to the success we have had in moderating the excessive rise in earnings, there is now another and new development to be taken into account, and that is the very important initiative taken by the C.B.I. at the meeting of its Council last week.
§ From the Government's point of view, the more favourable outlook for prices which has been created by that initiative has important implications for economic policy. If prices rise markedly less, then the possibility is opened up of moderating the rate of wage inflation, which in turn would ease the pressure on prices. This prospect improves the outlook for our international competitive position.