Those restraining forces were more evident in goods-price inflation, which in the CPI slowed substantially to only about ½ percent in 1997, than on service-price inflation, which moderated much less -- to around 3 percent. Providers of services appeared to be more pressed by mounting strains in labor markets.
Finally, it is important not to overlook a fourth force for change, a decade of economic prosperity that provided a rich context for growth and opportunity in the banking industry, and for financial markets more generally. This prosperity was fueled significantly by capital investment in information technology and in telecommunications capabilities.