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Services are more likely to keep climbing

It’s unlikely for many services to see significant price declines, mostly because businesses are paying more for labor now and workers usually don’t experience pay cuts, said James Knightley, the chief international economist at ING Economics. As labor costs increase, it becomes more expensive for businesses to operate, leading to firms passing on some of those cost increases to consumers.

“Employers don’t like doing it,” Knightley said. “The relationship with your workers is hurt very badly. So actual wage cuts, you only tend to see that in extreme circumstances.”

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