The current decline in prices thus seems to be undergoing a qualitative change: from being rooted in a large outgap, it has gradually sprung more from improvements in productivity and firms' efforts to trim labor costs to enhance their competitiveness. It is unlikely, however, that this situation will continue forever.
It is undoubtedly the case that higher productivity increases the potential supply capacity, causing a temporary easing of labor market conditions which is unfavorable to wage increases. Nevertheless, so long as a rise in productivity does not occur continuously, sooner or later the labor that has been freed up will be re-employed and wages will start to rise.