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The rate of increase of consumer prices in the United States has fallen, gradually, from nearly 14% in mid-1974 to an average rate of about 6% for the past six months. Some further reduction in the average rate of inflation is likely to occur in 1976. Experience in the rest of the world covers a wide range. Some countries substantially reduced the rate of price increase; in others the rate of increase remained high. During the year 1975, consumer prices rose by more than 20% in Britain, by approximately 10% in France, Italy and Canada, and by 5% or less in Germany and Switzerland. Why are the rates of price increase in these countries so different? Why is inflation no longer proceeding at high or rising rates everywhere? Why have some countries succeeded in reducing inflation where others have failed?