INFLATION TRENDS AROUSE CONCERN

Chronicle (Levin), 7 June 1946, Page 5

INFLATION TRENDS AROUSE CONCERN

(.'orrespondent.)

DEFINITE ACTION NEEDED BY GOVERNMENT

( Special

Received Thursday, IJ.o p.m. LONDON, June (5. Ooncern continues to be expressed in Hritaiii 011 the trend towards inflation. Both wages and prices increased this year, wages by 41 per cent. and prices by l per cent. since Junuary. Wages have risen more rapidly than at any time in the pnst 26 years and have iieen sharecl by oue in every four of the working population. These facts have given rise to a fear that the proeess may eontinue in detinitely, that proluction costs mai niake British gooils too dear abroad. i and tlmt the rise in wages will not be matched by corresponding efliciency and produetiveue.ss of the nation 's industries. The series of minor strikes which have been oceurring, are mostly concerned with demaiuls for increases in wages. Many have been given and the upward trend is stated to be duc to " eompensation " for loss of wai ON'ertiiue and the need to attraet mort workers to vital industries. The (rovernment does not intend to introduce a national wages policy on the grouiul that any interference with ordinary bargaining liiethods would bestreituously resisled by trade unions The unions are also opposed to the direction of labour but are pressing for 'a 40-hour week. There is a feeling that the point is ap])roaching wliere the (xovennneiit niust take delLnite aetion or risk a. breakdovvn of its eeonomics. Coimiientiug on the posilion, Sir dolin Anderson, a fonner Chancellor of the Exchequer, 'stated that proiluctiv e efliciency must be increased. There must be more gooils for the home market vithout yirejudice to export trade. There must also be a most vigorous savings investment caiu[laign. He also dociareil: "Every yiroyiosal for increased wages or increased soeial service or vhntever it may be ouglit to be judged by this test: Vi'ib there be at least a corresponding in- , crease in national eHiciency?''