Page 14-Friday, August 11, 1978-The Michigan Daily SMALLER INCIR Wholesale foodprices WASHINGTON (AP) - Wholesale food prices declined in July for the first time in 10 months, giving consumers the prospect of relief this fall from ever- rising prices at grocery store counters, the government reported yesterday. While the Labor Department's index of wholesale food prices decreased by 0.3 per cent last month, overall I don't think this indi- cates a declining trend of food prices. It means the rise in food prices will be more moderate . . . this one bit of good news for July does not mean the price problem is over at all.' -Lyle Gramley, a Carter economic advisor wholesale prices rose by 0.5 per cent. Nonetheless, the overall increase was the smallest in five months, the depar- tment said. GOVERNMENT officials said that because of the declining wholesale food prices, consumers can expect their food bills to go up more slowly in the next few months because farmers and processors are charging less for their products. "We would expect to see smaller in- creases in retail food prices, probably within a month or two," said John Layng, assistant commissioner of labor statistics. He said some of the improvement in prices, particularly in beef and pork, may start showing up immediately at supermarkets. But officials also cautioned that consumers should not expect retail food prices to drop. LAYNG SAID that while wholesale food prices were declining, the cost of other products went up 0.8 per cent, ac- counting for the overall 0.5 per cent in- crease. "I don't think this indicates a declining trend of food prices," said Lyle Gramley, an economics adviser to President Carter. "It means the rise in food prices will be more moderate." Gramley added, "This one bit of good news for July does not mean the price problem is over at all." THE DEPARTMENT said the decline in food prices was the first in 10 months and followed sharp increases averaging 1.3 per cent per month in the first half of 1978. Meanwhile, prices were accelerating for jewelry, furniture, home applian- ces, passenger cars, tobacco and health products, the report showed. tEASES AHEAD 'down, for a change Contributing most to the decline in go up 10.4 per cent in 1978. The ad- wholesale food prices were sharp drops ministration is counting on slower in- in costs of beef and pork. creases in food prices to hold inflation to 7.2 per cent. IRONICALLY, higher beef and pork Economists were encouraged by prices alone had helped cause food lower food prices at the earliest stages prices to go up nine per cent in the first of production - at the farm. Crude food six months of the year. prices declined 2.5 per cent, the largest Economists said the supply of beef drop since August 1977. The cost of food may have increased, while the demand at the intermediate stage of processing may have declined, causing prices to go went up 1.5 per cent, but most of that down, was attributed to higher prices for Prices also dropped for rice, animal feeds. vegetable oil products, and coffee. The Labor Department measures However, wholesale prices increased wholesale prices from a variety of for fruit, vegetables, fish, bread, flour- goods nearly ready for the consumer, based mixes and eggs. called finished goods. The Producer THE DECLINE in food prices was Price Index for finished goods was not as sharp as some private 195.9, meaning that products costing economists had predicted. However, it $100 in the base period of 1967 cost was encouraging to the Carter ad- $195.90 last month. ministration which has been trying to The index was 8.1 per cent higher persuade unions and businesses to hold than in July 1977. The 0.5 per cent wages and prices down. overall wholesale price increase in July If the inflation rate of the first six followed consecutive gains of 0.7 per months continues all year, prices will cent in May and June. Teamsters call By The Associated Press The 7,500 ground employees of Pan American World Airways went on strike for about 15 hours yesterday, at the height of the international tourist season, delaying daytime flights by up to three hours. Pan Am said the settlement came in time to get evening flights off on schedule.. The Teamsters walkout came on a day when Pan Am had 235 overseas flights scheduled. The airline announced the settlement yesterday afternon, but said, "Terms of the agreement were not announced, pen- ding ratifiction by the union membership." All 900 maintenance employees, mechanics, laborers and others walked out at Cape Canaveral, as members of the Transport Workers Union (TWU) honored Teamster picket lines. However, TWU president S.D. Hereford said the strike was not expected to interfere with last night's scheduled launch of a Trident missile. "I SUPPOSE management could do it by itself," Hereford said. While Pan Am planes continued to operate between this Pan Am strike country and most overseas capitals, flights to Mexico City reportedly were canceled because ground crews there were on strike. Ronnie Belpanno, a Teamsters trustee, said issues in the strike were job security in connection with automation, pension improvements and cost-of-living protection. THE STRIKE WAS called by the airline division of the Teamsters, composed of 7,500 employees who handle Pan Am's reservations, sales, passenger services, cargo, medical facilities and supplies. "We're maintaining it's a job action and not a legitimate strike," said Allan Graessle, financial controller for Pan Am in San Francisco, where about six pickets were on duty. Reflecting this view, recorded announcements at Pan Am reservation desks advised callers: "Due to temporary job action, you may experience some del'ay." HOWEVER, WILLIAM GENOESE, a top Teamsters negotiator in the Pan Am dispute, said, "There is a strike." The Air Line Pilots Association (ALPA) left it up to in- dividual members whether to cross Teamsters picket lines. NRC gives okay for Seabrook nuke plant CONCORD, N.H. (AP) - Construc- tion of the controversial Seabrook atomic power plant can resume im- mediately, the Nuclear Regulatory Commission (NRC) ruled yesterday. The builder said it would begin "gearing up" immediately. Opponents said "civil disobedience" would resume. THE NRC ruled 4-0 in Washington that Environmental Protection Agency (EPA) approval last week of the plant's cooling tunnels eliminated the con- ditions which led to suspension of, the permits. "We will begin immediately the or- derly process of reassembling the work force and gearing up construction," said William Tallman, president of the Public Service Co., prime builder of the $2.3 billion plant. "All issues relating to the project have been thoroughly considered during the six-and-a-half-year licensing process," Tallman said. "Further at- tempts to delay completion of the plant are not in .the best interests of the rim o MwUnmmnc.i " position to the plant, said they were "outraged" by the NRC decision and were making plans to resume their protests of the facility "almost im- mediately." "Many different groups within the Clamshell Alliance will demonstrate their opposition to the ruling through a series of non-violent civil disobedience actions," said Judy Elliott, a Clamshell spokeswoman. "We have no plans, at this time, for another demonstration at the plant, but plans could rapidly change," Elliott said, "We will definitely make. our presence known." At 4'demonstration in June 1977, 1,414 people were arrested for trespassing on the 715-acre site. This June, an estimated 18,000 people attended a three-day demonstration. There were noarrests. Construction was halted July 21 by the NRC while the EPA studied the en- vironmental effects of cooling the plant with two two-and-a-half-mile long tun- nels and while the NRC investigated alteritte locations in New.England for the nin nt in no AP vonlino -eMwa..,. -..