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Credit global competition with keeping price inflation in check. Domestic producers are concentrating on cost reduction to compete with foreign companies, according to economist Ronald Talley of WEFA Group Inc.

• In an international comparison of hourly compensation in manufacturing, the U.S. went from the top of the list in manufacturing costs in 1985, at $13 an hour, to number four last year at $17, according to Bureau of Labor Statistics data.

• It's now behind Germany's $32 an hour, Japan's $24 and France's $19.

But since 1985, wages in China have grown to 25 cents from 16 cents; while in India's labor costs fell to 25 cents from 35 cents; Thailand's to 46 cents from 49 cents; and Mexico's to $1.51 from $1.59.

Economists see a number of other factors at work to control productions costs and consumer prices, including inventory reductions, weaker consumer markets, companies willing to accept lower margins and a labor sector more concerned with holding on to jobs than achieving higher wages.

Source: Claire Mencke, "Businesses Want to Raise Prices, But Competition Won't Let Them," Investor's Business Daily, November 25, 1996.