BIS central bankers’ speeches  3  Graph 3  So, we can expect that ageing will lead to extra demand for services at the same time that it weighs on the supply of services (via declining labour force participation). More demand and less supply will push up the prices of services, relative to the prices of goods.
This rise in the relative price of services has long been apparent for other reasons. One reason for this is that productivity growth has tended to be greater for goods than for services. That is, we’ve got better at producing more goods for a given level of inputs, more so than has been the case for services.