Evening star., 1952-08-02
|Cost-of-Living Rise
TO Hit New Record,
Price Experts Predict
BY George Beveridge

By George Beveridge
Government price experts to-
day forecast another new high
in cost of living later this month,
in the wake of an estimate that
food costs have scared to a new
peak.
Price Stabilizer Ellis Arnall
said the ugly picture of rising
prices is plain to any one with
a desire to see it,"
His comment was spurred by a
Bureau of Labor Statistics report
that food prices zoomed IL per
cent during the two-week period
ending July IS. This placed costs
at 1851 per cent of the level of
the 1935-1939 base period and
almost is per cent higher than
at the outbreak of the Korean war
in June. 1850.
The food price data was gath
cred from eight major cities.
Washington was one Of the eight.
The last overall cost of living
report, covering the month end
ing June Is, raised that index
to new high. Since food re-
presents about one-third Of all
costs for the average family, it
appears certain the next overall
index-covering the month end
ing July 15-will hit a new high.
Over the two-week period in the
food survey, egg prices jumped
Is per cent and dairy products
went up by almost 2 per cent.
While fruits and vegetables
average 0.5 per cent lower, there
were increases for meats, poultry
and fish.
Mr.. Arnall warned that the rec
ord food prices still do not reflect
effects of Congress decontrol of
fruits and vegetables, or the
Iscorching drought which is dam
laging crops in the South and
New England.
Arnall Forecasts Future.
Mr.. Arnall said the BIS report
clearly shows what the public can
expect in the weeks and months
ahead:
!; Rising prices. higher living
costs, further depreciation of the
dollar. and fewer airplanes, tanks,
guns and equipment for the
amount Of money we are spend
ing for national defense.
1.-The constant increase in liy.
ing costs, especially the steady
rise in the cost of food. is a strong
argument against those siren
voices among the business COM
munity who have been telling Con-
gress the need for concern
about the cost Of living is over"
An increase in the July cost Of
living index would be enough to
Require a raise for more than /
million auto workers whose pay is
revised quarterly in line with the
index.
Putnam Blames Republicans.
Meanwhile. Economic Stabilizer
Roger L. Putnam blamed Republic
cans for the spiral. On a Colum-
bia Broadcasting System program,
lie commented on actions of the
recently adjourned Congress-. de-
lclaring:
There's just no question that
the Republican Party was voting
to cripple controls. The Democrats
were fighting to keep the power Of
controls where they're needed"
In a separate development.
Government officials estimated in
creased ceiling prices on alum:-
mum, scheduled to be ordered
; Monday, will boost national de-
fense costs from SIS to $40 mill
!, lion.
At the same time, q statement
by Mr.. Arnall that the recent
steel price increase will add $100
a year to the average family's liv-
ing costs was challenged by Ernest
, T. Weir, chairman of the National
, Steel Corp.
> Estimate Labeled Untrue.
Mr.. Weir said the estimate was
: absolutely untrue" He said that
if the industry operates at capac.
|ity during the next year, the ac-
tual price increase on steel will
, be 'only about $40 per family per
year spread over automobiles.
} washing machines, refrigerators.
tin cans and everything else made
of steel that the family buys"
I In answer to reporters ques-
ton, Mr.. Arnall also said he does
not plan to resign next week.
There had been reports he would
step out when President Truman
returns from Missouri.
Mr.. Arnall opposed the recent
$5.20-a-ton price increase for
steel. But he stressed that when
he does decide to resign, 1t will
not be because of the decision to
raise steel prices.