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BUSINESS Wholesale Inflation Just ;L 1.8% in 1984

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BUSINESS Wholesale Inflation Just ;L 1.8% in 1984 211 - M AN rH FSTER HERALD, Thursday. Jan. H), 1985 MANCHESTER FOCUS SPORTS WEATHER J .1 B U SINESS Young says water Bargains abound Critic takes look Snow ends tonight; needs to be protected in weekend movies at Whaler picture I sunny, cold Saturday Walt until 1987 ... page 3 ... page 11 ... page 15 ... page 2 Cost-of-living index needs major revision Surely you phone long distance now and then. Or you equipment weren’t really part of our everyday lives 12 to buy rather than to trace the individual items in lt,J play video games. Or fiddle with a home computer years ago during the last Consumer Expenditure And it’s more significant to know how that coslj and assorted paraphernalia. All these activities have Survey. But the market for them keeps expanding and changes. ■ two elements in common; All are services or goods now they belong in the market basket. The same holds The goal is to capture all consumer items — food,, that have become familiar in the past decade or so — lit. * ' Your true for video recorders, video games, other similar theater tickets, fuel, everything — and construct aj and NONE is included as a part of the current consumer goods and services. weighted average, or number. Each component JianrlirHlrr Mrralft Money's assigned a weight list that is incorporated in thef consumer price index (C PI). “ The CPI looks at the price of consumer goods f Fririav.Friday, JanJan. 11, 1985 — Single copy: 25Q average, or number, that is rep o rt^ to you each The above is merely a sampling to illustrate how out only,” notes Steven Malin, an economist in economic Manchester, Conn. — A City of Village Charm Worth month, 'The C PI does have an upward bias because of date this index — the most closely watched, widely A policy research at the Conference Board in New York. some of its heaviest components — fuel, housing, publicized and influential government statistic we Sylvia Porter " I t does not intend to chart the prices of all consumer medical care — have increased in price more than have — has become. To correct this, the CPI will be goods. Rather, it measures average price increases in average. This greater rise in the CPI makes the rate of revised and a new CPI will be introduced in January a representative market basket of goods and 1987. services." inflation appear larger than it actually may be. But this raises another sticky problem. Since This is of vital importance, for since 1972 all transfer January 1987? Why so long? people's ^ n d in g habits change over time, the payments, such as Social Security benefits, have been Historically, the Labor Department has updated the But there has been progress. Future revisions will Wholesale inflation just ;l 1.8% in 1984 contents of a representative market basket change as indexed to increases in the CPI. “ The CPI is part of the CPI every decade, give or take a few years. "W e try to have more current information included. The well. law, and also the lore, of America,” says Malin. 7.5 percent increase. Pork got 3.4 keep the market basket as consistent as possible,"- Consumer Expenditure Survey has been made into an The Producer Price Index for further after they declined 4.1 Not only are new products introduced regularly. “ People associate the inflation rate with*the growth, gas fell for the month and moder­ The government’s report weighs percent more expensive, also less says a Labor Department spokesman. ongoing rather than once-in-a-decade event. By Denis G. Gulino December is 292.4, equivalent to a percent in all of 1984. That was Quality changes also occur. As just one illustration, rate in the CPI. And' cost-of-living adjustments in' ate increases in the price of pork prices increases for nearly 3,400 of a rise than the month before. United Press International cost of $2,924 for goods that cost exactly half the rate of decline in The department cranks in results from the What items will be discarded? What new ones Malin notes that in 1979 all new dishwashers used everything from union contracts to government and beef kept food prices to a 0.5 categories of goods that businesses Vegetables were 5 percent included? The Labor Department explains it really sell each other. The wholesale $1,000 in 1967. 1983 but nevertheless quite Consumer Expenditure Survey, a two-pronged effort copper plumbing. Now, he says, the plumbing in new programs are based on it.” WASHINGTON - Prices at the percent increase in December. cheaper but fish became 5.1 doesn't discard the old, but adds new ones, as well as price, reflecting the cost of goods Wholesale prices went up 0.5 substantial. that measures how consumers spend money, as well dishwashers is.plastic. "In effect it’s the same item,” Whether that’s good news for you depends on who wholesale level edged up a scant “ You can’t complain about t.8 percent more expensive. creates new categories, as needed. These new goods bought in large quantities, does not percent in November, the second Heating oil cost 2.9 percent less as where and on what items. And the survey takes says Malin. "But is it really the same?” you are and what you do. If your benefits are being, 0.1 percent in December, giving all percent,” a department economist and services are weighted according to how directly change consumer prices, largest monthly surge of last year, in December. Gasoline was down several years to complete and analyze. The CPI has long been criticized for providing an hiked more than the overall cost of living in times o f of 1984 an inflation rate for said. “ We’re doing better than the Shortening and other cooking important they are in the market basket of goods and but the trends do carry through to after dropping or standing still in 1.2 percent and natural gas also The 1987 CPI revision will incorporate data from the outdated snapshot of consumer spending in the United rapid inflation, you may say “ great.” If not —and that wholesale goods of only 1.8 per­ Consumer Price Index." oils dropped 3.4 percent but fresh services in the CPI. six of the previous seven months. reversed the typical increases 1982-84 survey (and be out of date even as it is being States. In response, the Labor Department says it's includes millions of us — our retort is — use yourow a cent, the Labor Depatment said The CPI for December A'ill not cash registers. fruits were up 2.8 percent. The wholesM* inflation rate for But now wholesale prices are usual during the winter heating released with huzzahs). more important to trace what the market basket costs words. today. be measured (or another 12 days For instance, home computers and related settling down again without any season by falling in price for the "W e will probably get no signifi­ The 1.8 percent rate is only half but it is expected to show an all of 1983 was even better than 1984, at only 0.6 percent. But some negative trends on the horizon that fourth month in a row, by 0.5 cant acceleration in finished goods of what the inflation rate for inflation rate for all of 1984 of 4 broad categories of wholesalie^ could spoil the picture anytime percent. prices at least in the early part of consumerprices is expected to be percent or less, moderate but still 3-^-st)on, analysts say. Among the foods, beef went up in this year.” economist Donald for 1984. reflecting more price acceleration prices, like those for raw mate­ rials, actually showed less of an Energy prices are expected to price onlyL^ercent, a significant Ratajezak of Georgia State Uni­ Pratt lauds return The price dealers paid for at retail than for wholesale Business merchandise. increase last year than in 1983. stay much the .same or even fall slowdovOrPTHWi November’s huge versity said. to military contracts In Brief heating oil, gasoline and natural Stop & Shop buys chain Fire kills EAST HARTFORD (UPI) - An Air Lowell Weicker, R-Conn., said. Force decision to award Pratt & Awarding the lion's share of the BOSTON — The Stop & Shop Cos. has m Whitney Co. a contract for a nearly contract to GE in February meant a announced its intention to buy Alm y Stores Inc., a kids equal share of its jet fighter engines setback for Pratt, which was dealt a chain of 25 stores selling moderately priced 1 : UM may spark a comeback for the aircraft further blow in July when Turkey chose fashion merchandise. company. G E’s new F-110 engine for the 160 F-16 Stop &. Shop, which operates 132 Bradlees ' h ' - BROCKTON, Mass. (U P I) - Company officials and union leaders fighters it is buying. discount aepartment stores, bought Alm y from Five children have died from a fire reacted with satisfaction to Wednes­ the privately held Federal Street Investors Inc. believed started by a “wierd- Until last year’s decision, Pratt's day's announcement that Pratt, a The acquisition "will enable our company to looking" makeshift electric heater (* % F-lOO engine was used to power both the division of the United Technologies enter the moderate-priced department store thought to be the only source of twin-engine F-15 and the single-engine Corp., will get-46 percent of the Air business, an emerging growth area of the retail heat to warm the house against F-16.
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