Evening star., 1949-01-02
Moderate Decrease
In Living Expenses
Forecast in 1949
BY the Associated Press

BY the Assoeiotsd Press
NEW YORK, Jan. 1.-The man
with the small pocketbook should
find it easier in 1S49 to make ends
meet.
The cost of keeping himself alive
should be little less. The little
mans problem will be to keep his
take-home pay as high as in 194S.
If the little man can't notice
much change yet in the strato-
spheric cost of living, he should
turn for reinsurance to the statis-
tician and to his wife.
His wife can tell him that she
gets little more for her dollar at.
the grocery store than she did a
year ago, that many clothing items
are either cheaper or better quality
for the money, and that there are
few things she wants to buy that
aren't in good supply at last. She
can shop around. And the old
fashioned bargain sale is back in
style. =.
The slide-rule boys will tell him
that almost every index they keep
commodity price, consumer, whole
sale price, food, cost Of living-has
been falling recently. The down.
ward trends are expected to con-
tinue for awhile. They disagree as
to how steep the slope.
The Bureau of Labor Statistics
figures the cost of living as about
172 per cent OF the 1859 average.
This Is drop of 211a per cent since
August.
Don't Get Too Hopeful.
But don't get too optimistic.
Many things cost more now than a
year ag~-the BIS index is still "A
per cent higher than year ago
and some of the things you use are
likely to go higher still.
Rents have risen in some places,
and may be allowed to go up here
and there across the country. You
are not likely to see them 60 down.
Nor are you apt to be able to build
a house in 1949 much cheaper than
you can now. Yet in some places,
there are new houses standing
empty and waiting, with fancy price
tags on them. And lumber prices
have dropped Is to Is per cent of
late.
Telephone, electric light and gas
rates went up In 194s some places.
There are plans under way to raise
them in still others.
Home fuel oil and gasoline prices
tended upward In l94S, but the
supply Of petroleum Is working into
balance with demand and there are
plentiful signs that many oil pro-
ducts may be cheaper before l949 is
over.
Metal Prices at High Marks.
Metal prices are high. Many have
never been higher. And the most
important ones are scarce-steel,
copper, lead. zinc, tin. aluminium.
So that the maker Of every product
you use that has metal in it may
have trouble holding his price line.
Your new. car costs you more than
it would If you had brought it a
year ago. And if you're waiting for
that new model next year, be pre-
pared to pay still more for 1t. But
used car prices have softened re-
Gently in many places.
If the railroads get their re-
quested 13 per cent freight rate
increase, on top of the hikes they
made in 194S, the cost of moving
food and other products from origin
to your door will be little higher
either bolstering commodity prices
or pushing them up.
Passenger fares went up in l948.
Commuters pay more to ride the
rails to work in some places, and
other increase requests are pending.
Bus and subway fares were hiked
during the year in some cities.
However, furniture has moved
over into a buyers market. So have
radios, home appliances and CAD
gets. High production costs may
limit price cuts, but from now on
the statesmen will be after you
rather than your trying to get on
dealers list.
Taxes are part Of the cost OF
living. Either they come out of
your income directly or they are
tackled onto the price of everything
you buy. Some States and cities are
reported ready to raise taxes. What
Congress will do remains to be seen.