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Prices and incomes policy

A longer-term and less precise form of price control with a similar restraint on incomes. The principal object of such a policy, favoured by successive governments in recent years, is attempt to keep inflation in check by holding down both prices and wages. It is mostly in the sphere of wages, where a agreement to minimize wage increases I made ultimately with the trade union individually and the T.U.C. overall. The assumption is that if wage levels are kept in check then, in so far as prices are del check then, in so far as prices are determined by them, the overall cost of living will also be controlled.

Reference: The Penguin Business Dictionary, 3rd edt.