Page 2--Wednesday, November 23, 1977-The Michigan Daily
U.S. consumers get
respite from inflation
WASHINGTON (AP) - The gov-
ernment had good holiday news for
'Americans yesterday, reporting a
moderate rise in inflation in October
and the biggest monthly gain in
workers' buying power since June.
It said consumer prices increased.
a moderate 0.3 per cent, the same for
the fourth consecutive month.
Workers benefitted from an in-
crease of 1.1 per cent in the purchas-
ing power of their paychecks in Octo-
ber, raising their real earnings -
take home pay adjusted for taxes and
inflation - to a level 4.6 per cent
above that of a year ago.
PRICES HAVE increased at a 3.8
per cent' annual rate over the past
three months, in sharp contrast with
the 10 per cent rate at the beginning
of the year.
The cooling of inflation since mid-
year is expected to boost consumer
confidence in the economy and make
it easier for the Carter administra-
tion in its battle against unemploy-
"This is certainly a favorable sign
for real growth in the economy be-
cause consumers have more money
to spend," said Courtenay Slater, the
Commerce Department's chief econ-
SHE CAUTIONED, however, that
price increases in future months
"aren't going to be as modest as the
past three months," nor will income
gains be as large as in October. "But
all the same," she said, "it is quite
The Labor Department said the
moderate rise in consumer prices
has been largely due to small
increases in prices for food and other
The big spring and summer de-
clines in wholesale farm prices that
helped moderate retail food prices
ended last month, when wholesale
prices jumped 2.4 per cent. Most
economists expect grocery prices to
start rising at a somewhat faster
pace this winter.
GROCERY PRICES in October
rose only 0.1 per cent, after seasonal
adjustment, the same rate as, in
September. Prices edged down for
sugar, coffee, eggs, pork and cereal
and dairy products. Poultry and beef
Before seasonal adjustment, the
Labor Department said grocery
prices actually declined 0.1 per cent
Prices for commodities other than
food rose 0.3 per cent in October,
about the same as in the previous two
Gasoline, clothing, and tobacco
prices also were up sharply last
month, while prices for used cars fell
for the sixth consecutive month.
ge of UN
Producers For, MIME " DRAMA
IMPROVISATIONS * CHILDREN'S
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Job Description & Applications
At UAC Office, 2nd Floor Union.
Applications due 5 P.M., Nov. 28
- . --
* ANNOUNCING *
P ith Igan Mil 1
YOUR CHANCE TO ACHIEVE ARTISTIC IMMORTALITY! I I
DINNER FOR TWO AT ONE
OF ANN ARBOR'S FINEST
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