As regards competitiveness, the OECD notes that the increase in prices in the non-traded sectors of the economy has been quite pronounced in recent years. The cost base of that sector is substantially determined by wage growth. Higher prices in the non-traded sectors increase the cost base for the traded sectors of the economy. The traded sector cannot easily pass on higher costs through higher prices. The profitability of firms in the traded sector risks being curtailed, with the potential to lead to retrenchment in their operations and job losses. The rising cost of living in the economy is also likely to reduce the attractiveness of Ireland as a location for high value added investment and associated high-skill workers.