THE MICHIGAN DAILY
Friday, July 22, 1977
Consumer prices up .6% in June
WASHINGTON (') - An-
other substantial boost in con-
sume' prices last month
iN ought the total rise in prices
'uring the first six months of
this year to 4.4 per cent, near-
ly equaling price increases in
all of 1976.
Consumer prices rose six-
tet:hs of one per cent in June,
matching the May increase, the
I -hor Department said yester-
dry. Higher prices for food and
most services, including house-
hol gas and electric, were
largely to blame.
CONSUMER PRICES rose by
DEADLINE FOR ORDERING
A CAP AND GOWN IS:
FRI., JULY 22, '77
$2 Late Charge for Gowns
Ordered After Deadline
AVAILABLE ONLY AT THE
in the Basement of the
ot7: 4.8 per cent in 1976, but
scared at a ten per cent annual
r-te during the first three
months of 1977. The pace eased
somewhat during the second
qtarter when prices rose 8.1
pt r cent annual rate. This
means that prices rose during
tho first half of this year at a
nine per cent annual rate.
While inflation continued at a
higf. rate, there was some en-
couraging news. from the Com-
merce Department, which re-
parted that the economy show-
ed strong growth throughout the
second quarter of the year.
The Gross National Product
(GNP) rose at an annual rate
of 6.4 per cent during the
three month period, the Com-
merce Department said. The
department also revised its
f:ist-quarter GNP figures from
6 9 per cent, as announced last
month, to 7.5 per cent.
THE GNP MEASURES the
market value of the nation's
output of goods and services
and is a key sign of economic vegetable prices were down, but
st-ength. Economists say that this was more than offset by
a 5 per cent increase in GNP higher prices for processed
for the next 18 months would foods, such as dairy products,
cit unemployment to 6.1 per canned fruits and vegetables
cent at the end of 1978 from and coffee.
the 7.1 per cent rate last month. A Commerce Department
The Carter administration is economist said it appeared that
projecting an inflation rate of the higher processed food prices
alout 6.5 per cent this year, but reflected higher prices of fresh
n'ay have to revise that fore- foods earlier in the year.
cast if prices don't begin mod-
erating in the coming months. "SOME OF THESE whole-
Government economists had sale price changes should begin
expected to see some easing of showing up at the retail level
inflation last month following in the coming months, and on
a sowdown in wholesale prices that basis we ought to see a
during May and a drop of further moderation in consumer
seven-tenths per cent in June. prices,' said Courtenay- Slater,
the department's chief econo-
WHOLESALE P R I C E S mist.
generally foreshadow prices Despite rising prices, the La-
c:nsumers pay, but there are her Department said the pur-
time lags and the relationship chasing power of most workers
isn't always precise. increased last month.
In June, retail food prices The department said after-tax
rose eight-tenths of a per cent earnings adjusted for inflation
fonowing a seven - tenths rise rose 34 per cent in June and
the previous months. Beef, were 3.3 per cent ahead of
poultry and fresh fruit and earnings in June, 1976. How-
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ever, the gain resulted from an
increase in the standard tax
deduction, which showed up in
reduced tax withholding start-
irg June 1.
THE CONSUMER price in-
dex stood at 181.8 in June,
meaning that a marketbasket
of goods and services selling
fer $100 in 1967 now costs
Among other items/measured
by the index besides food are
the cost of services, which rose
eight-tenths of a per cent last
month, about the same rate as
in previous months. Household
utlity charges, mortgage inter-
est rates, and the cost of trans-
portation services and medical
care all increased.
Prices of goods other than
food rose by only two-tenths of
a per cent, an encouraging
sign. This was the smallest in-
crease in nearly four years for
these items, which economists
regard as a more sensitive mea-
sure of inflationary trends
than volatile food prices.
Gasoline prices continued to
tncrease last month, but not by
as much as they normally do
in June. After adjustment for
seasonal changes, gasoline
prices showed a slight decline.
Uysed car prices declined, while
prices for clothing, new cars,
fuel oil and coal increased.
THE MICHIGAN DAILY
Volume LXXXVII, No. 49-S
Friday, July 22, 1977
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