THE MICHIGAN DAILY
Wednesday, June 23, 197
Consumer price index up sharply
prices jumped by the biggest
margin in six months-pulled up
by suddenly higher food costs,
the Labor Department said yes-
Over-all consumer prices in
May were up by six-tenths of 1
per cent, which amounts to an
annual rate of 7.2 per cent, the
department said. Prices had
gone up four-tenths of 1 per
cent in April.
The May increase means the
cost of maintaining what the
Labor Department considers an
intermediate life style for a
family of four increased last
month by $70 to an annual total
FOOD PRICES were up a full
percentage point for the biggest
increase in that category since
the 1.8 per cent rise last July.
Meat and poultry prices staged
the biggest increases.
Commodities other than food
were up at a faster pace, too,
because g a s o l i n e, fuel oil,
houses, clothing and new and
used cars were more expensive.
The six-tenths of 1 per cent in-
crease for May was double
April's three-tenths of 1 per cent
The May report was muted
somewhat, however, by the first
increase in three months in
Americans' buying power. After
subtracting taxes from earnings
and discounting for inflation, the
Labor Department figured real
spendable earnings climbed 1.2
per cent. Buying power had de-
clined a full percentage point
over the two previous months.
AMONG THE food price in-
creases beef climbed 5.2 per
cent for the first increase in
five months. Pork was up 4.1
per cent. Chicken prices rose
1.1 per cent. Coffee prices jump-
ed 4.8 per cent, putting them 35
per cent ahead of where they
were a year ago when last
year's hard frost in Brazil be-
gan registering at the super-
'The performance in food was
in sharp contrast to consecutive
decreases in the first three
months of the year. Food prices
had been a crucial factor in
holding the inflation rate for
those three months to below 3
per cent at an annual rate.
Despite the latest increase,
however, prices are still 6.2 per
cent ahead of a year ago, ahd
that is the inflation rate which
government economists consider
to be the long-term trend.
MAYNARD COMIEZ, acting
chief economist for the Com-
merce Department, s a i d he
doesn't think inflation can con-
tinue on a sustained basis at the
"Food is a volatile commod-
ity," he said. "If we continue to
get good crop reports and weath-
er reports, I think it's possible
we should see some moderation
in food prices later in the year."
The increase for services was
at a slowed four-tenths of 1 per
cent pace, despite sharply high-
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SUPPORIE0 BY A GRANT FROM THE MICHIGAN COUNCIL FOR TH .A RTS.
plan OK'd Dem caucus
er charges for gas and electri-
city. Services had gone up five-
tenths of 1 per cent in April
making May the fourth consecu.
tive month when prices in the
category have either dropped or
COMIEZ SAID the likelihood
of more moderate price in-
creases for food and the slower
trend already apparent in serv-
ices constitute evidence that
"we should not see a rapid ac-
celeration of prices."
Gasoline rose a penny a gal-
lon, leaving the cost of a gallon
of leaded regular at 58 cents,
compared to 55 cents a year
Gas and electricity rates were
up 1.1 per cent, compared to a
two-tenths of 1 per cent increase
chairman and leader to certily
monthly the pay and perform,
ance of duties of every employe
The accounting would be pub-
licly released e v e r y three
Two proposals, if approved by
the caucus, will be put to the
full House for action next week.
One would take back much of
the power the House turned ovei
to Hays and the committee i
1971 to increase member'
different accounts for tisiet
staff, stationery and other
The House is almost certin
to approve that because Repb
lican leaders backed by t:)
GOP members have already i
traduced a bill to do it.
WASHINGTON (/) - Federal
advisory committees yesterday
recommended that the nation go
ahead with a federal plan to im-
munize adults against swine flu.
Committees advising the U.S.
Public Health Service said that
after considering results of the
first human tests with swine flu
vaccine they see no reason to
change plans to immunize the
entire adult population.
The committees said more re-
search is needed before they
c a n recommend vaccinating
children and young adults. Re-
searchers said the study should
be completed by late August
and a decision made then on
how to proceed with children.
Dr. David Sencer, director of
the Center for Disease Control
in Atlanta, said sufficient vac-
cine should be on hand to start
adult immunization shortly after
(CooTlinued from Pare 3)
tration Committee as "an inde-
pendent power source'" It would
require the speaker to appoint
its Democratic members start-
ing next year.
Democratic Caucus Chairman
Phillip Burton of California ob-
jected that could make a speak-
er a czar over House funds,
sources said, but the recommen-
dation was approved 14 to 7.
The House's 287 Democrats
are to act on the recommenda-
tions at a caucus today.
THE CAUCUS itself could de-
cide whether to adopt the pro-
posal on staff payrolls. This
measure would require every
House m e m b e r, committee
at Bicycle Jim's
takes the "Blue"
out of Monday
(and every other day)
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