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MAY

U. s. D E P A R T M E N T OF LABOR
B u r e a u of L a b o r S t a t i s t i c s




1968

Bulletin N o . 1 5 4 3
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MAY 1968
BULLETIN NO. 1543

U.S. DEPARTMENT OP l a d u h
Willa rd W irtz, S ecretary
BUREAU OF LABOR STATISTICS
Arthur M. Ross, C o m m issio n er

For sale by the Superintendent o f Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price 45 cents




PREFACE
The 1 9 6 5 -6 6 p r i c e a d v a n c e , w h ic h b r o u g h t the f i r s t t h r e a t o f in fla t io n in a
d e c a d e , p o s e d a c r u c i a l p r o b l e m s t ill f a c e d by this c o u n t r y at the end o f 1967.
In P r i c e P e r s p e c t i v e , 1 9 6 5 -6 7 b a s i c i n f o r m a t i o n and a n a ly s e s a r e p r e s e n t e d
f o r p o l i c y m a k e r s as w e l l as f o r a ll p e r s o n s c o n c e r n e d w ith r e c e n t p r i c e t r e n d s
and t h e ir i m p l i c a t i o n s .
R e t a il and w h o l e s a l e p r i c e d e v e lo p m e n t s b e t w e e n 1965
and 1967 a r e p la c e d in p e r s p e c t i v e and the r e a s o n s f o r the p r i c e t r e n d s in the
a g r i c u l t u r a l , in d u s t r ia l, and s e r v i c e s e c t o r s o f the e c o n o m y a r e a n a ly z e d .
D e ta ile d a p p e n d ix and text t a b le s a r e s u p p lie d f o r k ey W h o le s a le P r i c e
In d e x e s and C o n s u m e r P r i c e I n d e x e s . T h e t a b le s h ave b e e n o r g a n i z e d to s h ow
m e a n in g fu l r e la t io n s h ip s a m o n g p r i c e in d e x s e r i e s . S p e c i a l e m p h a s is has b e e n
g iv e n to t h o s e s e r i e s w h e r e im p o r t a n t p r i c e m o v e m e n t s have tak en p l a c e s i n c e
1964.
T h is b u lle t in w a s p lanned and p r e p a r e d b y P e a r l R a v n e r W illia m s u n d e r the
g e n e r a l d i r e c t i o n o f A r n o l d E. C h a se , A s s i s t a n t C o m m i s s i o n e r o f P r i c e s and
L iv in g C o n d it io n s .
T o s h i k o N a k a y a m a p e r f o r m e d m u c h o f the r e s e a r c h , and
F lo y d C oy n e w a s r e s p o n s i b l e f o r the a p p e n d ix t a b le s .




111

CONTENTS

Page
C h ap ter I. P r i c e s in P e r s p e c t i v e ..................................................................................
M a jo r D e v e l o p m e n t s .........................................................................................................
1967 T r e n d s .............................................................................................................................
A L o n g e r P e r s p e c t i v e ......................................................................................................
C h ap ter II. F a r m P r o d u c t s and F o o d P r i c e s ...........................................................
Supply and D e m a n d ............................................................................................................
R is in g C o s t s and the F a r m - R e t a i l S p r e a d .............................
S p e c i f i c P r i c e T r e n d s ......................................................................................................
L i v e s t o c k , m e a t s , and p o u l t r y ...........................................................................
M ilk and d a i r y p r o d u c t s ............................................................................................
Wheat, f l o u r , and b r e a d ........................................................................................
F r u it s and v e g e t a b l e s .................................................................
F o o d aw a y f r o m h o m e ...............................................................................................
C h a p ter III. C h a r g e s f o r C o n s u m e r S e r v i c e s ........................................................
M a jo r 1 9 6 5 -6 7 D e v e l o p m e n t s ................
S e r v i c e I n d u s t r i e s : L a b o r - I n t e n s i v e S e r v i c e s .................................................
D em a n d T r e n d s and P r i c e s .....................................................................................
P r o d u c t i v i t y ......................................................................................................................
C o s t s ...................................................................................................................................
In te r e s t , I n s u r a n c e , T a x e s , and R e n t .....................................................................
U t ilit ie s and P u b lic T r a n s p o r t a t i o n ........................................................................
C h a p ter IV. P r i c e s o f In d u s tr ia l M a t e r ia ls and P r o d u c t s ..............................
U n d e r ly in g E c o n o m i c I n f l u e n c e s ...............................................................................
S p e c i f i c P r i c e T r e n d s ......................................................................................................
Steel M ill P r o d u c t s ......................................................................................................
N o n f e r r o u s M e t a l s ......................................................................................................
M a c h i n e r y .........................................................................................................................
L u m b e r and W o o d P r o d u c t s ..................................................................................
H ides, L e a t h e r , and F o o t w e a r ...........................................................................
T e x t i l e s and A p p a r e l .......................... . ....................................................................
A u t o m o b i l e s ......................................................................................................................
O il and P e t r o l e u m P r o d u c t s ..................................................................................
C h a rts:
F r o n t i s p i e c e , W h o l e s a l e and C o n s u m e r P r i c e s , 1 9 6 1 -6 7 ..........................
1. W h o le s a le and C o n s u m e r P r i c e s , 1 9 6 4 - 6 7 .....................................................
2. W h o le s a le P r i c e s , 1 9 6 4 - 6 7 .....................................................................................
3. C o n s u m e r P r i c e s , 1 9 6 4 - 6 7 .....................................................................................
4. W h o le s a le In d u s t r ia l P r i c e s by Stage o f P r o c e s s i n g , 1 9 6 4 -6 7 . . . .
5. F o o d P r i c e s : F a r m , W h o le s a le , and R e t a il, 1 9 6 4 -6 7 ..........................
6 . Y e a r - t o - Y e a r C h an ges in C o n s u m e r S e r v i c e P r i c e s , 1 9 6 3 - 6 7 . . . .
7. F in is h e d C o n s u m e r G o o d s , 1 9 6 4 -6 7 ..................................................................
IV



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vi
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C O N T E N T S -C o n t in u e d

Page
T a b le s:
1. W h o le s a le P r i c e In d ex es f o r F a r m P r o d u c t s , P r o c e s s e d
F o o d s , and In d u s t r ia l C o m m o d i t i e s , Q u a r t e r l y P e r c e n t
C h a n g es, 1 9 6 6 -6 7 ..................................................................................................
2. C o n s u m e r P r i c e In d ex es f o r S e le c t e d C o m m o d i t i e s ,
Q u a r t e r l y P e r c e n t C h a n g e s , 1 9 6 6 -6 7 ........................................................
3. W h o le s a le P r i c e In d ex es f o r F a r m P r o d u c t s and C o n s u m e r
P r i c e In d ex es f o r F o o d s , A nnual A v e r a g e s and P e r c e n t
Change, 1 9 6 4 - 6 7 ......................................................................................................
4. S e le c t e d C o n s u m e r S e r v i c e P r i c e s , Annual A v e r a g e s and
P e r c e n t Change, 1 9 6 4 -6 7 ..................................................................................
5. S e le c t e d C o n s u m e r S e r v i c e P r i c e s , Q u a r t e r l y P e r c e n t
C h a n g es, 1 9 6 6 - 6 7 . ; ...............................................................................................
6 . W h o le s a le P r i c e In d ex es f o r S e le c t e d In d u s t r ia l C o m m o d i t i e s ,
A n nual A v e r a g e s and P e r c e n t Change,
1 9 6 4 - 6 7 ..................................
7. W h o le s a le P r i c e In d ex es f o r S e le c t e d In d u str ia l C o m m o d i t i e s ,
Q u a r t e r l y P e r c e n t C h a n g e s , 1 9 6 6 -6 7 ........................................................
8 . C o n s u m e r P r i c e In d ex es f o r S e le c t e d In d u s t r ia l C o m m o d i t i e s ,
An nual A v e r a g e s and P e r c e n t C hange,
1 9 6 4 - 6 7 ..................................
A p p e n d ix T a b le s
T a b le A - l .
C o n s u m e r P r i c e In d ex es by M a jo r G r o u p s , 1 9 5 4 -6 6 . . . .
T a b le A - 2 . C o n s u m e r P r i c e In d ex es f o r F o o d , 1 9 5 4 - 6 6 ..............................
T a b le A - 3 . C o n s u m e r P r i c e In d ex es f o r A l l C o m m o d i t i e s and
f o r K ey D u r a b le s , 1 9 5 4 -6 6
T a b le A - 4 . C o n s u m e r P r i c e In d ex es f o r N o n d u r a b le C o m m o d i t i e s ,
1 9 5 4 -6 6 ..................................................................................................
T a b le A - 5 . C o n s u m e r P r i c e In d ex es f o r S e r v i c e s , 1 9 5 4 -6 6
T a b le A - 6 . A l l - i t e m s C o n s u m e r P r i c e In d ex es f o r 23 C it ie s ,
A n nual A v e r a g e s and P e r c e n t C h a n g e s ,
1 9 5 4 -6 6 .................................................................................
T a b le A - 7 . W h o le s a le P r i c e In d e x e s, by Stage o f P r o c e s s i n g ,
1 9 5 4 -6 6 ...................................................................................................
T a b le A - 8 . W h o le s a le P r i c e In d ex es f o r S e le c t e d F a r m P r o d u c t s ,
1 9 5 4 -6 6 ...................................................................................................
T a b le A - 9 . W h o l e s a l e P r i c e In d ex es f o r S e le c t e d P r o c e s s e d
F o o d s , 1 9 5 4 -6 6 ..................................................................................
T a b le A - 10. W h o le s a le P r i c e In d ex es f o r S e le c t e d In d u s tr ia l
C o m m o d i t i e s , 1 9 5 4 -6 6 ....................................................................




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52

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56
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58
59
60

v

INDEX (1957-59=100)
115

110

105

100

130

CONSUMER PRICES
125

120

115

N DURABLE COMMODITIES
110

105

ABLE COMMODITIES

10 0

1961




CHAPTER I
Prices in Perspective
A lth ou gh the c u r r e n t l o n g - t e r m
e c o n o m i c e x p a n s io n b e g a n e a r l y in
1961 , p r i c e s r e m a i n e d r e l a t i v e l y
s ta b le until e a r l y 1965 w h en they
turned u p w ard . B y the s p r in g o f
1966, the N ation w a s f a c e d w ith the
f i r s t th r e a t o f in fla tio n in a d e c a d e .
The p a u s e in e c o n o m i c a c t iv it y in
la te 1966 and e a r l y 1967 l e s s e n e d
p r i c e p r e s s u r e s on ly m o d e r a t e ly .
When e c o n o m i c a c t iv it y a c c e l e r a t e d
again a f t e r m i d - 1967, u p w a rd p r e s ­
s u r e s on p r i c e s b eg a n to in te n s ify .
The p r o b l e m o f how to m a in ta in
fu ll u t iliz a t io n o f r e s o u r c e s w h ile
r e s t o r i n g p r i c e s ta b ilit y w h ich c o n ­
fr o n t e d p o l i c y m a k e r s in e a r l y 1966
b e c a m e e v e n m o r e a c u t e at the end
o f 1967. M a jo r p o t e n t ia ls f o r i n ­
f la t io n r e m a i n e d —high l e v e l s o f
c i v i l i a n and m i l i t a r y s p en d in g and
r i s i n g c o s t s w h ich , i n c r e a s i n g l y ,
w e r e r e f l e c t e d in h ig h e r p r i c e s .
In 1967, the W h o l e s a l e P r i c e
Index a v e r a g e d 5 1 / 2 p e r c e n t h ig h e r
than in 1964, and the C o n s u m e r
P r i c e Index 7 1 / 2 p e r c e n t .
O v e r the
3 - y e a r p e r i o d , p r i c e s a d v a n c e d in
r e s p o n s e to v a r y in g c o m b in a t io n s o f
d em a n d , sup ply, and c o s t f a c t o r s .
Supply b o t t le n e c k s f o r c e r t a i n f a r m
p r o d u c t s and in d u s t r ia l ra w m a t e r i ­
a ls w e r e the c h i e f s o u r c e s o f u p ­
w a r d p ush on p r i c e s in 1965. A l ­
though s p en d in g in the p r i v a t e s e c t o r
had b e e n exp an d in g r a p id ly f o r s e v ­
e r a l y e a r s , a v a ila b le r e s o u r c e s w e r e
s u ff ic ie n t to m e e t o v e r a l l d em an d .
3y la te 1965, h o w e v e r , p r i c e a d n c e s b e c a m e m o r e g e n e r a l w hen




d e m a n d p r e s s u r e s in t e n s ifie d as
ste p p e d up m i l i t a r y r e q u i r e m e n t s w e r e
s u p e r i m p o s e d on s p en d in g in the p r i ­
va te s e c t o r .
In the f i r s t h a lf o f 1966, u s e o f m a n ­
p o w e r and in d u s t r ia l r e s o u r c e s w a s a p ­
p r o a c h i n g c a p a c it y , and c o s t - p u s h as
w e l l as d e m a n d - p u l l f a c t o r s b e g a n to
in f lu e n c e the p r i c e s t r u c t u r e .
R is in g
c o s t s w h ic h had b e e n a b s o r b e d in the
p r e v i o u s few y e a r s o f b e l o w - c a p a c i t y
o p e r a t i o n s w e r e b e in g p a s s e d on.
P r ic e s of co n s u m e r s e r v ic e s a lso
b e g a n to r i s e f a s t e r , due in p a r t to
c o m p e t i t i o n f o r a v a ila b le l a b o r . In
a d d ition , the tight m o n e y situ a tion
c a u s e d m o r t g a g e i n t e r e s t r a t e s to
advance.
A f t e r m i d - 1966, tight m o n e y as
w e l l as g o v e r n m e n t a c t io n s h e lp e d to
r e d u c e d em a n d p r e s s u r e s in the c i v i l ­
ian s e c t o r and the p a c e o f e c o n o m i c
a c t iv it y had m o d e r a t e d b y la te 1966 .
A t the s a m e t im e , s o m e o f the e a r l i e r
su p p ly b o t t le n e c k s f o r f a r m p r o d u c t s
and in d u s t r ia l r a w m a t e r i a l s w e r e
r e s o l v e d , and t h e s e p r i c e s d e c lin e d .
H ow ever, stron g er evid en ce of " c o s t p u s h " p r e s s u r e s b e g a n to a p p e a r and
w h o l e s a l e p r i c e s o f f in is h e d g o o d s r o s e
in s p it e o f the s lo w d o w n in b u s i n e s s
a c t iv it y in the f i r s t h a lf o f 1967.
When the e c o n o m y r e s u m e d its e x ­
p a n s io n a ft e r m i d - 1967, f a r m and fo o d
p r i c e s w e r e the m a j o r e x c e p t io n s to
r i s i n g p r i c e s although they, to o , r o s e
s h a r p ly at y e a r end. A g a in , as in 1965,
s o m e s ig n if ic a n t i n c r e a s e s w e r e t r i g ­
g e r e d by s p e c i a l s itu a tio n s su ch as the
c o p p e r s t r ik e and the s h o r t su p p ly o f

1

raw c o tto n .
Cost p re ss u re s, how ­
e v e r , w e r e a s ig n if ic a n t ly s t r o n g e r
in f lu e n c e on p r i c e s than 2 y e a r s ag o.
A lth o u g h d e m a n d in m o s t i n d u s t r ie s
w a s f a r f r o m p r e s s i n g a g a in s t c a p a c ­
ity, it w a s s t r o n g enough to p e r m i t
p r i c e s to b e r a i s e d in r e s p o n s e to
h ig h e r c o s t s .

Chart 1. Wholesale and Consumer Prices

Major Developments

Unlike the p r e v i o u s p o s t w a r e c o ­
n o m i c e x p a n s io n s , the f i r s t 4 y e a r s
o f p r o s p e r i t y f o l l o w i n g the 1960-61
r e c e s s io n re p re s e n te d a p e rio d of
r e l a t i v e p r i c e s ta b ility . W h o l e s a l e
p r i c e s in 1964 w e r e no h ig h e r than
in I 960 , and the r i s e in c o n s u m e r
p r i c e s w a s h e ld to an annual r a t e o f
s lig h t ly o v e r 1 p e r c e n t .
Unit la b o r
c o s t s s h o w e d no g e n e r a l i n c r e a s e
o v e r the 4 - y e a r p e r i o d as p r o d u c t i v ­
ity gains m a t c h e d a v e r a g e w a g e a d ­
vances.
U n e m p lo y m e n t r a t e s w e r e
r e l a t i v e l y high, and the r a t e o f u s e
o f m a n u fa c t u r in g c a p a c it y w a s r e l ­
a t i v e l y low .
A lth ou g h d em a n d i n c r e a s e d s u b ­
s ta n tia lly a ft e r the 1960-61 r e c e s ­
sion , the e c o n o m y ' s c a p a c i t y to p r o ­
d u c e w a s not o v e r t a x e d .
M oreover,
b a la n c e d g r o w th a m o n g the d iff e r e n t
e c o n o m i c s e c t o r s p r e v e n t e d the d e ­
v e lo p m e n t o f p r o d u c t io n b o t t le n e c k s
and m a n p o w e r s h o r t a g e s w h ic h often
s tim u la te w a g e and p r i c e in c r e a s e s -.
S u m m a r iz in g the situ ation, the C o u n ­
c i l o f E c o n o m i c A d v i s e r s sta ted in
J a n u a r y 1965 that "S u s ta in ed e c o ­
n o m i c e x p a n s io n d u rin g the p a s t 4 y e a r s w a s a c c o m p a n i e d by a h ea lth y
b a la n c e a m o n g w a g e s , p r i c e s and
p r o d u c t i v i t y . . . . T h e p e r i o d w a s, e s ­
s e n t ia lly , in fla t io n f r e e . ” 1/
A y e a r la t e r , c i r c u m s t a n c e s had
c h a n g ed s ig n if ic a n t ly . In the s p r in g
o f 1965, p r i c e i n c r e a s e s r e s u lt in g

1964

1965




1967

fro m sh orta ges of three b a s ic c o m ­
m o d it ie s - p u s h e d the p r i c e in d e x e s
u p —f a r m e r s had cut b a c k h og p r o d u c ­
tion d r a s t i c a l l y b e c a u s e o f d e p r e s s e d
1 9 6 3 -6 4 h o g and p o r k p r i c e s , s t r ik e s
at h o m e and a b r o a d as w e l l as p o l i t i c a l
d i f f i c u l t i e s in s o m e p r o d u c in g c o u n t r ie s
had c r e a t e d a c o p p e r s h o r t a g e , and the
d r o u g h t that had d e s t r o y e d A r g e n t in e
h e r d s r e s u l t e d in a s e v e r e l im it a t io n o f
the w o r l d su p p ly o f c a t t le h id e s and
le a t h e r .
M o r e b a s i c a l l y , the s t e p - u p o f our
m i l i t a r y e f f o r t in V iet N am a f t e r s e v ­
e r a l y e a r s o f lim i t e d i n v o lv e m e n t not
on ly c r e a t e d s o m e s p e c i a l im b a l a n c e s
but a l s o c a u s e d a s p u rt in d em a n d . The
new l a y e r o f d e m a n d , i m p o s e d on an
a l r e a d y p r o s p e r i n g e c o n o m y , p u sh ed
p r i c e s up f u r t h e r .
The late 1965 u p ­
turn in p r i c e s f o r f a r m p r o d u c t s , f o o d s ,
and c r u d e in d u s t r ia l m a t e r i a l s c o n t in ­
ued into e a r l y 1966 , and w a s jo i n e d by
s u b s ta n tia l a d v a n c e s in c h a r g e s f o r

j-^Th e Annual R e p o r t o f the C o u n c il o f E c o n o m i c A d v i s e r s .
U. S. G o v e r n m e n t P r in t in g O ff ic e , W ashington, D. C. P. 54.
2

1966

J a n u a r y 1965,

c o n s u m e r s e r v i c e s as w e l l as h ig h e r
p r i c e s f o r m a n y in d u s t r ia l p r o d u c t s .
F o r the f i r s t t i m e in n e a r l y a d e c a d e ,
the t h r e a t o f in fla tio n a p p e a r e d in this
c o u n tr y .
T o c o u n t e r a c t the in f la t io n a r y p o ­
ten tial, m o n e t a r y a u t h o r it ie s t o o k
s te p s to tighten the m o n e y su p p ly in
D e c e m b e r 1965, and the F e d e r a l
G o v e r n m e n t r e s o r t e d to a v a r i e t y o f
f i s c a l m e a s u r e s the f o llo w in g y e a r .
E a r l y in 1966, the G o v e r n m e n t r e ­
s c in d e d the J a n u a r y 1 e x c i s e tax r e ­
d u c tio n f o r a u t o m o b i l e s and t e le p h o n e
s e r v i c e s , i n c r e a s e d w ith h old in g r a t e s
fo r p e rso n a l in co m e taxes, speeded
the c o l l e c t i o n o f c o r p o r a t e t a x e s , and
in t e n s ifie d e f f o r t s to a p p ly the w a g e p r i c e g u id e p o s t s to k e y w a g e and
p r ic e d ecision s.
L a t e r in the y e a r ,
Personal
D isp osa b le
Incom e

the in v e s t m e n t tax c r e d i t and c e r t a i n
a c c e le r a te d d e p re cia tio n allow a n ces
w e r e s u sp e n d e d . 2 /
The g r o w t h in d em a n d s lo w e d , as
c a n be s e e n f r o m the f o l l o w i n g t a b ­
ulation.
C o n s u m e r s p e n d in g (in
c o n s ta n t d o l l a r s ) f e l l s lig h t ly in the
s e c o n d q u a r t e r o f 1966 and, s u b s e ­
qu en tly a d v a n c e d at a m u c h s l o w e r
p a c e than in 1965. H ou sin g a c t iv it y
sank to a p o s t - W o r l d W ar II low , and
the r a te o f g r o w t h in plant and e q u ip ­
m e n t e x p e n d it u r e s d e c r e a s e d s u b s t a n ­
tia lly . F e a r s o f in fla tio n aba ted and
la te in the y e a r c o n c e r n b e g a n to d e ­
v e l o p o v e r the e f f e c t s o f the e c o n o m i c
s lo w d o w n . In N o v e m b e r 1966, m o n e ­
t a r y r e s t r i c t i o n s w e r e e a s e d and, the
f o l l o w i n g June, the 7 p e r c e n t i n v e s t ­
m e n t ta x c r e d i t w a s r e s t o r e d .

Personal
C o n s u m p t io n
E x p e n d it u r e s

W h o le s a le
P rice
Index

C onsum er
P rice
Index

(1958 d o l l a r s )
1959 - 6 0
I 960 - 6 1
1961 - 6 2
1962 - 6 3
1963 - 6 4
1964 —6 5
1965 - 6 6
1966 - 6 7

.............
.............
.............
.............
.............
.............
.............
.............

2.
3.
4.
3.
7.

2
1
7
8
0

5. 0
4. 3

2. 9
2. 0
4. 9
4 .4
5. 8
6. 6
4. 9
2. 8

0. 1
-0 .4
0. 3
-0 . 3
0. 2
2. 0
3. 3
0. 2

1.
1.
1.
1.
1.
1.
2.
2.

6
1
2
2
3
7
9
8

T h e N ation al I n c o m e and P r o d u c t A c c o u n t s o f the United S ta tes, 1 9 2 9 19 6 5 , and S u r v e y o f C u r r e n t B u s i n e s s , J a n u a r y 1968. O f f i c e o f B u s i n e s s
E c o n o m ic s , D epartm ent o f C o m m e r c e .
A lth o u g h the s la c k e n in g p a c e o f the
e c o n o m y no doubt had a m o d e r a t in g
in f lu e n c e on p r i c e s , the p r i c e im p a c t
in 1966 s t e m m e d m a in ly f r o m o t h e r
fa ctors.
M o s t o f the s u b s ta n tia l p r i c e
d e c r e a s e s w h ic h to o k p l a c e a f t e r e a r l y
1 966 r e s u l t e d f r o m the e a s in g o f su p ply

s h o r t a g e s f o r the s a m e f a r m p r o d u c t s
and c r u d e in d u s t r ia l m a t e r i a l s —h o g s ,
c a t t le h id e s , and c o p p e r —w h o s e p r i c e s
had ju m p e d u p w a rd e a r l i e r . No s i m ­
il a r p r i c e d e c r e a s e s o c c u r r e d in
c h a r g e s f o r c o n s u m e r s e r v i c e s w h ich
b eg a n to a d v a n c e at the f a s t e s t p a c e

2 / A m o r e c o m p r e h e n s i v e a c c o u n t o f e c o n o m i c d e v e lo p m e n t s in 1966 m a y
b e found in " T h e E c o n o m y in 1966: T h e E c o n o m i c S e ttin g " by H ym an L.
L e w is in M on th ly L a b o r R e v ie w , F e b r u a r y 1967.
(R e p r in t No. 2522)




3

Chart 2 . Wholesale Prices

Index (1967-59 = 100)

1964

1965

1966

1967

s i n c e the K o r e a n c o n f l i c t p e r i o d .
A m o n g in d u s t r ia l c o m m o d i t i e s ,
w h o l e s a l e p r i c e s o f fin is h e d p r o d u c t s
con tin u e d u p w a rd th rou gh ou t 1966
and w e r e r e f l e c t e d , in turn, in h ig h ­
e r r e t a i l p r i c e s (ta bles 1 and 2 ).
A lth o u g h r i s i n g i n c o m e l e v e l s and
g r o w in g c o n s u m e r and m i l i t a r y d e ­
m and w e r e im p o r t a n t f a c t o r s , the
1 9 6 5 -6 7 p r i c e a d v a n c e is not f u lly
e x p la in a b le by e x c e s s i v e d em a n d
p r e s s i n g a g a in s t p r o d u c t i v e c a p a c it y .
Th e s h a r p 1965 to e a r l y 1966 p r i c e
i n c r e a s e w a s t r i g g e r e d by su p p ly
b o t t le n e c k s f o r c e r t a i n f a r m p r o d u c t s
and c r u d e i n d u s t r ia l m a t e r i a l s .
D e­
s p ite s u c h t e m p o r a r y su p p ly s h o r t ­
a g e s , t h e r e w a s n o gen uine in f la ­
t i o n a r y gap c a u s e d b y c o n tin u e d l a c k
o f c a p a c i t y to m e e t the n e e d s o f
exp an d in g d em a n d .
N or w e r e the p r i c e i n c r e a s e s in
1965 and 1966 p r i m a r i l y p a r t o f a
" c o s t - p u s h " in fla t io n s i m i l a r to that
r e s u lt in g f r o m the 1 9 5 5 -5 7 i n v e s t ­
m ent boom .
T h e l a r g e 1965 and
e a r l y 1966 i n c r e a s e s did not c o m e
f r o m t h o s e s e c t o r s o f the e c o n o m y
s u b je c t to c o n c e n t r a t e d w a g e and
m a r k e t p o w e r . Not until la te 1966
4




did e v i d e n c e o f " c o s t - p u s h " p r e s s u r e
b e g in to a p p e a r , as r i s i n g c o s t s
p u s h ed w h o l e s a l e p r i c e s o f fin is h e d
g o o d s u p w a rd in s p ite o f the s l o w ­
dow n in b u s i n e s s a c t iv it y .
When the
e c o n o m y r e s u m e d its in t e r r u p te d
e x p a n s io n in m i d - 1967 c o s t f a c t o r s
b e c a m e i n c r e a s i n g l y im p o r t a n t. P r i c e
i n c r e a s e s s p r e a d and b e c a m e p e r v a ­
s i v e t o w a r d s y e a r e n d . A lth ou gh
d e m a n d in m o s t i n d u s t r ie s w a s f a r
f r o m p r e s s i n g a g a in s t c a p a c it y , it
w a s s t r o n g enough to p e r m i t p r i c e s
to b e r a i s e d in r e s p o n s e to h ig h e r
costs.
A lth ou g h the m a g n itu d e o f p r i c e
r i s e v a r i e d a m o n g the d if f e r e n t s e c ­
t o r s o f the e c o n o m y , p r i c e s f o r a ll
s e c t o r s a v e r a g e d s u b s ta n t ia lly h ig h ­
e r in 1967 than in 1964 b e f o r e the
c u r r e n t up turn beg an . C h a r g e s f o r
c o n s u m e r s e r v i c e s w h ic h a d v a n c e d 11
p e r c e n t i n c r e a s e d the m o s t .
D e s p it e
the d e c r e a s e s in la t e 1966 and in 1967,
a g r i c u l t u r a l l y - b a s e d p r i c e s w e r e s t ill
s i g n i f i c a n t l y a b o v e th e ir 1964 l e v e l s —
r e t a i l and w h o l e s a l e fo o d 7 and 9 p e r ­
c e n t r e s p e c t i v e l y , and f a r m p r o d u c t s
6 p e r c e n t . In the in d u s t r ia l s e c t o r ,
w h olesa le p r ic e s avera ged 5 p e rce n t

Chart 3. Consumer Prices

h ig h e r in 1967 than in 1964, and r e t a i l
p r i c e s f o r m a n u fa c t u r e d g o o d s 4 1 / 2
percen t.
1967 Trends

P r i c e a d v a n c e s in 1967 w e r e no
doubt m o d e r a t e d b y the l o s s o f f o r w a r d
m o m e n t u m o f the e c o n o m y in the f i r s t
h a lf o f the y e a r . A t the s a m e t im e ,
co n tin u in g high l e v e l s o f c i v i l i a n and
m i l i t a r y d em a n d , r i s i n g p r o d u c t i o n
and m a r k e t in g c o s t s , a tte m p ts to
m a in ta in p r o f i t m a r g i n s , e a s in g o f
c r e d i t r e s t r i c t i o n s , and a p s y c h o l o g i ­
c a l c l i m a t e c o n d u c i v e to w a g e and
p r i c e i n c r e a s e s s u p p lie d a m a r k e d
u p w a rd im p e tu s .
In e a r l y s u m m e r , the e c o n o m y
r e s u m e d its in t e r r u n t e d e x p a n s io n as
the s h a r p c u t b a c k in in v e n t o r y a c c u ­
Sept. 1966
to
D e c. 1966

m u la t io n w h ich had r e t a r d e d in d u s ­
t r ia l p r o d u c t io n in the f i r s t h a lf o f
1967 c a m e t 6 a halt. F in a l d em a n d
a d v a n c e d at abou t the s a m e p a c e in
the third q u a r t e r o f 1967 as e a r l i e r
in the y e a r , but r e a l output b e g a n to
r i s e at an annual r a t e o f 4 p e r c e n t
(fr o m 2 p e r c e n t the p r e v i o u s q u a r t e r
and no gain in the f i r s t q u a r t e r ) .
O n c e m o r e , in d u s t r ia l p r o d u c t io n ,
m a n - h o u r s w o r k e d , and i n t e r e s t r a t e s
m o v e d u pw ard
T h ro u g h o u t the y e a r , p r i c e
t r e n d s —p a r t i c u l a r l y at the w h o l e ­
s a le l e v e l —w e r e a f f e c t e d s t r o n g l y by
a g r i c u l t u r a l d e v e lo p m e n t s w h ic h
w e r e l a r g e l y in d ep en d en t o f the g e n ­
e r a l c o u r s e o f b u s i n e s s a c t iv it y . T h e
f o llo w in g ta b u la tio n s h ow s the e f f e c t s
o f f a r m p r o d u c t s and f o o d p r i c e s on
the o v e r a l l w h o l e s a l e and c o n s u m e r
p rice le v e ls :

D e c. 1966
to
M a r. 1967

M ar. 1967
to
June 1967

June 1967 Sept. 1967
to
to
Sept. 1 9 6 7D ec. 1967

(In p e r c e n t )
W h olesa le P r i c e
I n d e x ..........................
F a rm produ cts. .
P r o c e s s e d foods
and f e e d s . . .
In d u s t r ia l c o m ­
m od ities . . . . .
nsum er P r ic e
Index ..........................
F o o d ..........................
F o o d at h o m e . .
N on food c o m m o d ­
i t i e s ....................
S e r v i c e s .................

- 0. 8
- 6. 3

- 0. 2
- 2. 2

0. 6
2. 8

- 0. 1
-3 . 9

0. 6
0. 5

-2 . 3

- 2. 0

1. 8

0. 1

- 1. 1

0. 3

0. 5

0

0. 5

0. 8

0. 5
-0 . 7
- 1.2

0. 3
-0 . 5
- 1. 0

0. 9
0. 8
0. 7

0. 9
0. 7
0. 5

0. 9
0. 3
0

0. 7
1. 4

0. 1
0. 9

1. 0
0. 9

1. 0
1. 0

1. 0
1. 1

M a r k e d c h a n g e s in s u p p ly w e r e
c h i e f l y r e s p o n s i b l e f o r the tre n d o f
f a r m and f o o d p r i c e s in 1967. High
1 9 6 5 -6 6 p r i c e s b r o u g h t abou t the
l a r g e e x p a n s io n in f o o d p r o d u c t i o n and




c a u s e d p r i c e s to d e c l i n e in la t e 1966
and e a r l y 1967. S im i l a r l y , the s p r in g
1967 up tren d r e s u l t e d f r o m t e m p o r a r i ­
ly lim it e d s u p p lie s o f l i v e s t o c k and
f r e s h p r o d u c e , and the t h i r d - q u a r t e r
b

d ow n tu rn in f a r m p r o d u c t s p r i c e s
ca m e from r e co rd -b re a k in g crop s.
A g a in , e x p a n s io n and c u r t a i l ­
m e n t o f h o g p r o d u c t io n p la y e d
a s ig n if ic a n t r o l e .

Chart 4 . W holesale Industrial Prices by Stage of Processing

H o w e v e r , the d r o p in p r i c e s o f f a r m
p r o d u c t s did not b r in g a c o m m e n s u r a t e
d e c l i n e in f o o d p r i c e s e ith e r at w h o l e ­
s a le o r r e t a il.
W h o le s a le f a r m p r o ­
d u c ts p r i c e s a v e r a g e d 5 1 / 2 p e r c e n t
l o w e r in 1967 than in 1966, but fo o d
p r i c e s w e r e d ow n abou t 1 p e r c e n t at
w h o l e s a l e and - 0 . 3 p e r c e n t at the
g r o c e r y store.
L ik e o t h e r f in is h e d
goods, p r o c e s s e d foods a re m o r e
r e s i s t a n t to p r i c e r e d u c t io n s than to
p r i c e i n c r e a s e s and a l s o a r e l e s s r e ­
s p o n s i v e to the im m e d i a t e su p p ly and
d e m a n d s itu a tio n than c r u d e f o o d ­
stu ffs.
A m a j o r in f lu e n c e w h ich c a u s e d
c o n s u m e r p r i c e s to c o n tin u e r i s i n g
th rou g h ou t t h o s e p e r i o d s in 1966 and
1967 w h en w h o l e s a l e p r i c e s turned
dow n w a s c o n s u m e r s e r v i c e s , w h ich
c o n s tit u t e o n e - t h i r d o f the C o n s u m e r
P r i c e Index but a r e not r e p r e s e n t e d
in the W h o l e s a l e P r i c e Index. E a ch
m a j o r type o f s e r v i c e r e p r e s e n t e d in
the C o n s u m e r P r i c e In d e x —rent,
h o u s e h o ld s e r v i c e s , t r a n s p o r t a t io n ,
and m e d i c a l c a r e —had i n c r e a s e d m o r e
in 1966 than in any o f the p r e c e d i n g
5 years.
In p a r t i c u l a r , m o r t g a g e
i n t e r e s t r a t e s , h o s p ita l c h a r g e s ,
and p h y s i c i a n s ' f e e s had c l i m b e d
s te e p ly .
A lt h o u g h c o n s u m e r s e r v i c e c h a r g e s
c on tin u ed to a d v a n c e s u b s ta n t ia lly in
1967, the p a c e w a s m o r e m o d e r a t e
than in the la s t h a lf o f 1966. M o r t g a g e
i n t e r e s t r a t e s , in r e s p o n s e to the
e a s in g m o n e y su p p ly , d e c lin e d d u rin g
the f i r s t h a lf o f 1967. M e d ic a l c a r e
c o s t s con tin u e d to i n c r e a s e m o r e than

6




o t h e r ty p e s o f s e r v i c e s , and h o s p it a l
c h a r g e s c o n tin u e d to r i s e f a s t e r than
any o th e r ty p e o f m e d i c a l c o s t —ev e n
though the p a c e s la c k e n e d a f t e r e a r l y
1967.
In the in d u s t r ia l s e c t o r o f the e c o ­
n o m y , both w h o l e s a l e and r e t a i l p r i c e s
o f fin is h e d p r o d u c t s con tin u e d to i n ­
c r e a s e alth ou g h p r o b a b l y l e s s than i f
b u s i n e s s a c t i v i t y had not s l o w e d in the
f i r s t h a lf o f 1967. O nly p r i c e s o f c r u d e
in d u s t r ia l m a t e r i a l s f e l l a p p r e c i a b l y ,
and this d o w n tren d had b eg u n b e f o r e
m i d - 1966 as s p e c i f i c s u p p ly b o t t l e ­
n e c k s w e r e a lle v ia t e d . H o w e v e r ,
l e s s e n i n g d e m a n d p r e s s u r e s in e a r l y
1967 a l s o p la y e d a p a r t s i n c e m a t e r i a l
p r i c e s a r e g e n e r a l l y s e n s i t i v e to the
f o r c e s o f s u p p ly and d e m a n d . When
e c o n o m i c a c t i v i t y q u ic k e n e d in the
th ird q u a r t e r o f 1967, m a t e r i a l s p r i c e s
a d v a n c e d —p a r t i c u l a r l y in t e r m e d ia t e
m a t e r i a l s w h ic h in c lu d e s t e e l and n o n i e r r o u s m i l l p r o d u c t s a s w e l l as
l u m b e r and o t h e r c o n s t r u c t i o n m a ­
teria ls.

A t the r e t a i l l e v e l , p r i c e s o f
co m m o d itie s
b e g a n to i n c r e a s e
at the s a m e s u b s ta n tia l
p a c e as

consum er
s e rv ice
c h a r g e s , as
can
be
seen
f r o m the f o llo w in g
ta b u la tion s:

D ec.

1966
to
M ar. 1967

M a r.

1967
to
June 1967

June 1967
to
Sept. 1967

Sept. 1967
to
D e c. 1967

(In p e r c e n t )
W"PT: In d u s tr ia l c o m m o d i t i e s . . . .
C r u d e m a t e r i a l s . . ..........................
I n t e r m e d ia t e m a t e r i a l s . 0 . 0 . .
F in is h e d g o o d s :
C o n s u m e r n o n d u r a b le s . . . .
C o n s u m e r d u r a b le s . .................
P r o d u c e r s 1 g o o d s .......................

0. 5
-1 . 4
0. 5

0
-0 . 8
-0 . 1

0. 5
0. 1
0. 4

0. 8
1. 8
0. 8

0. 9
0
0. 5

0. 8
-0 . 3
0. 5

0. 7
0. 4
0. 4

0
1. 6
1. 6

C P I : C o m m o d i t i e s , e x c e p t fo o d . .
N o n d u r a b l e s ........................................
D u r a b l e s .................................................

0. 1
0. 4
-0 . 2

1. 0
0. 8
1. 2

1. 0
1. 2
0. 7

1. 0
1. 0
1. 2

T h e co n tin u in g a d v a n c e in w h o l e s a l e
and r e t a i l p r i c e s o f m o s t fin is h e d
g o o d s d u r in g the b u s i n e s s s lo w d o w n
in la te 1966 and the f i r s t h a lf o f 1967
r e f l e c t e d the p a s s i n g th r o u g h o f r i s i n g
l a b o r and o t h e r c o s t s .
T r a d it io n a lly ,
p r i c e s o f p r o c e s s e d g o o d s —u n lik e t h o s e
f o r m a t e r i a l s — e x h ib it c o n s i d e r a b l e
i n f l e x i b i l i t y and, in p a r t i c u l a r , a r e
h ig h ly r e s i s t a n t to d o w n w a r d p r i c e
pressures.
The c o s t s tru ctu re s of
f a b r i c a t i n g in d u s t r ie s a r e m o r e c o m ­
p l e x than t h o s e o f in d u s t r ie s p r o d u c ­
ing c r u d e m a t e r i a l s and in v o lv e n u m ­
e r o u s f a c t o r s and c o n d i t i o n s —u n r e ­
la ted to the d em a n d and s u p p ly o f ra w
m a t e r i a l s —w h ic h a r e d iff ic u lt to
ch a n g e. 3 /
A s evid en ce o f c o s t-p u s h p r e s s u r e s
a c c u m u la t e d in 1966 and 1967 and
s p e n d in g —both m i l i t a r y and c i v i l i a n r e m a in e d s t r o n g , the A d m i n i s t r a t i o n
proposed a 6 p ercen t in co m e -ta x

s u r c h a r g e , e f f e c t i v e on J u ly 1, 1967.
E n a c tm e n t w a s s t ill a m a t t e r o f C o n ­
g r e s s i o n a l d e b a te at the end o f the
year.
A Longer Perspective
In the tw enty y e a r s s i n c e 1947,
w h o le s a le p r ic e s have in cre a s e d a l­
m o s t o n e - t h i r d and c o n s u m e r p r i c e s
o n e - h a l f . A ll o f the w h o l e s a l e p r i c e
r i s e and m o s t o f the r e t a i l i n c r e a s e
o c c u r r e d d u r in g f o u r p e r i o d s : the
y e a r s i m m e d i a t e l y a f t e r W o r ld W ar
II, the K o r e a n e m e r g e n c y , the a f t e r m ath o f the 1 9 5 5 -5 7 in v e s t m e n t
b o o m , and s i n c e the s t e p - u p o f ou r
V iet N am e f f o r t in 1965. A s i d e f r o m
these p e rio d s, con su m er p r ic e s
in ch ed u p w ard and w h o l e s a l e p r i c e s
r e m a in e d s te a d y o r ed ged d ow n w a rd .
The c u r r e n t p r i c e u p tren d began,
as in 1950, w hen o v e r s e a s m i l i t a r y

3 / A m o r e d e t a ile d d i s c u s s i o n o f p r i c e in f l e x i b i l i t y is a v a ila b le in " P r i c e
T r e n d s and the B u s i n e s s C y c l e in P o s t w a r Y e a r s ” b y P e a r l C. R a v n e r in
M onthly L a b o r R e v ie w , M a r c h 1962 (R e p r in t No. 2388).




7

in v o lv e m e n t w a s s u p e r i m p o s e d
up on an a l r e a d y p r o s p e r i n g e c o n o m y .
In 1950, h o w e v e r , this t o o k p l a c e
l e s s than a y e a r a f t e r the 1948 —49
r e c e s s i o n w h ile ou r h e ig h te n e d
V ie t Nam c o m m i t m e n t in 1965 —
and the b eg in n in g o f the c u r r e n t
p r i c e u p tu r n —c a m e a f t e r 3 y e a r s o f
e c o n o m i c e x p a n sio n .
A s can be s e e n f r o m the f o l l o w i n g
ta b u la tion , the p e r c e n t i n c r e a s e s s i n c e
M a r c h 196s are c o n s i d e r a b l y s m a l l e r

than d u r in g the s h o r t e r p e r i o d o f the
K o r e a n e m e r g e n c y ; and w h o l e s a l e
p r ic e in c r e a s e s co m p a re fa vora b ly
w ith t h o s e d u r in g the m i d - 1 9 5 0 fs. 4 /
O nly at the r e t a i l l e v e l d o e s the
c u r r e n t p r i c e r i s e e x c e e d that o f
the m i d - l ^ O ’ s and, if the d i f f e r ­
e n c e in d u r a t io n o f the tw o u p ­
t r e n d s is c o n s i d e r e d , the 1956 —
57 r i s e w a s l a r g e r in t e r m s o f a v e r a g e m o n t h ly i n c r e m e n t — 0. 3 p e r c e n t
v e r s u s 0. 2- l / 2 p e r c e n t

M onths of p r i c e r i s e
CPI
C u r r e n t ....................................
M i d - 1 9 5 0 ' s .............................. .............
K o r e a n C o n f l i c t .................... .............

19

21

WPI
17
33
13

P ercen t In crease
CPI

WPI

8. 4
5. 9
12. 3

5. 4
8. 5
19. 2

4 / T h e d u r a tio n o f the in f la t io n a r y p e r i o d w a s d e t e r m i n e d b y the f i r s t and
l a s F m o n t h o f the a c c e l e r a t e d p r i c e upturn. S in c e c o n s u m e r and w h o l e s a l e
p r i c e u p t r e n d s g e n e r a l l y did not b e g in o r end on the s a m e m onth, the p e r i o d
v a rie s.
If the p e r i o d u s e d f o r the K o r e a n e m e r g e n c y is June 1950 to June
1951, the c o n s u m e r p r i c e r i s e w a s 9 p e r c e n t and the w h o l e s a l e r i s e 15 p e r ­
cen t. F o r the c u r r e n t p e r i o d , M a r c h 1965 to D e c e m b e r 1967 is u s e d f o r
c o n s u m e r p r i c e s and M a r c h 196 5 to A u g u s t 1966 f o r w h o l e s a l e p r i c e s .
8



T a b le 1. W h o le s a le P r i c e In d ex es F o r F a r m P r o d u c t s ,
And In d u s tr ia l C o m m o d i t i e s
Q u a r t e r ly P e r c e n t C h an ges

P r o c e s s e d Foods,

[N ot s e a s o n a l l y a d ju s t e d ]

1966
W h olesa le
p r ic e in ­
dexes

A ll c o m ­
m od ities . .
F arm prod­
u c ts ....................
Fresh
f r u it s and
v e g e t a b le s .
G r a in s . . .
Wheat. . .
Corn . . .
L iv estock .
Cattle. . .
Steers .
H ogs . . .
B arrow s
and
g ilts . . .
L iv e p o u l ­
t r y .............
B roilers
and
fryers .
Eggs . . ,
F lu id m il k
O ilseed s .
Raw c o tto n
P r o c e s s e d foods
and f e e d s . . .
C e r e a l s and
bakery p r o ­
d u c ts . . . .
Bread. . . .
M e a ts,
p o u lt r y and
f i s h .............




D e c . 1965 M a r c h
to
to
M a r c h June

1967
D e c. 1966 M a r c h June
to
to
to
Sept.
M arch
June

Sept.
to
D e c.

June
to
Sept.

Sept.
to
D e c.

1. 2

0. 3

1. 0

- 0. 8

- 0. 2

0. 6

- 0. 1

0. 6

3. 7

-2 . 4

4. 3

- 6. 3

- 2. 2

2. 8

-3 . 9

0. 5

10.
0.
-1 .
1.
3.
12.
4.
■10.

3
8
4
5
6
7
5
6

- 2.
4.
8.
3.
-5 .
- 6.
-7.
-1 .

0
5

6
8
0
8
8
4

10.
10.
11 .
11.
- 0.
- 1.
- 0.
- 0.

7

2
2
5
8
0
2
2

- 8.
-3 .
-5 .
-1 .
-1 0 .
- 6.
-.3.
-1 7 .

2

1

- 2. 9
- 1. 6
- 1. 0
- 1. 8
-0 . 5
1. 8
-0 . 4
-5 . 5

16 .
-3.
-7 .
- 2.
7.
3.
2.
17.

0
4
3
3
7
4

2
8
2
8
7
0
9
4

-1 9 .
- 10 .
-9.
-1 3 .
-1.
4.
6.
- 12 .

3
9
3
0
3
7
9
9

13.
- 0.
1.
-1 .
-5 .
-4 .
-3 .
-9 .

9
2
4
5
7
2
6
3

-11. 5

0. 7

-2 . 4

-14. 9

-7 . 4

18. 6

-14. 1

-7 . 8

15. 7

-5 . 3

- 8. 5

- 11 . 8

17. 6

-5 . 6

-14. 9

- 6. 4

-12.
22.
2.
- 8.
3.

- 2.
-2 .
0.
1.
16.

22.
-0 .
4.
4.
-0 .

4
3
4

2

1. 6

- 0. 2

3. 1

- 2. 3

- 2. 0

1. 8

0. 1

- 1. 1

0. 9
1. 1

1. 6
0. 4

4. 3
6. 8

- 0. 8
0. 2

- 0. 4
- 0. 9

- 0. 3
- 0. 4

- 0. 5

0. 3

0

0

2. 5

-3 . 0

2. 1

-7 . 0

- 2. 6

. 6. 5

0 3

-5. 0

1

2
8
1
4
2

9
3
9
2
4

5
5

8
3

3
3

-23.
-14.
- 1.
-2 .
0.

- 6.
-1 6 .
1.
- 0.
1.

-5 . 7
40. 8
1 1 .4
0. 6
-2 6 . 1

-7.
-23.
- 0.
9.
0.

29.
-1 6 .
-4 .
-3.
0.

7
7
0

8
8

9
5

0
4
9

4
5
4
4

9

T a b le 1. W h o le s a le P r i c e In d e x e s f o r F a r m P r o d u c t s * P r o c e s s e d F o o d s , c o n d .
and In d u s tr ia l C o m m o d i t i e s
Q u a r t e r l y P e r c e n t C h a n g es -—C on tin u ed
[N ot s e a s o n a l l y a d ju s t e d ]

1966
W h olesa le
p rice in ­
dexes

D e c . 1965 M a r c h
to
to
M arch
June

1967
Sept.
to
D ec.

June
1 to
Sept.

D e c. 1966 M a r c h June
to
to
to
M arch
Sept.
June

Sept.
to
D ec.

Processed
foods —C ont’ d

0. 6
M ea ts, o . .
B e e f and
v ea l. . .
9. 8
P o r k . . . -1 0 . 4
P rocessed
p o u l t r y . . . 13. 8
D a ir y p r o ­
d u cts . . . .
3. 3
M ilk .............
2. 7
C heese. . .
8. 1
P rocessed
f r u it s and
v e g e t a b le s .
-0 . 3
Canned
f r u it s and
ju ice s . . . . -1. 3
Frozen
f r u it s and
j u i c e s . . . . - 2. 9
Canned v e g ­
e ta b le and
ju ices. . . .
1. 1
Frozen veg­
e t a b le s . . .
0
A lch olic
b ev era g es . -0. 3
N o n a lc h o lic
beverages.
0
M an u factu r­
ed a n im a l
fe e d s . • . .
0. 8
In d u s t r ia l
co m m o d itie s .
0. 8
Crude
m a teria ls . .
3. 9
10




-3 . 7

3. 0

- 6. 3

-4 . 3

9. 1

1. 2

- 6. 0

-5 . 1
-1 . 4

3. 6
4. 3

-4. 2
-9. 9

- 1. 1
- 10 . 2

6. 2
-16. 4

4. 4
-1. 9

-4. 7
-9 . 6

- 1. 1

-4. 9

-13. 1

6. 6

-3 . 9

-3 . 7

-7. 5

1. 3
0. 6
0. 4

6. 6
4. 6
9. 0

-1 . 5
1. 5
- 6. 6

-1 . 3
-1 .4
-3 . 4

1. 2
2. 9
-0 . 4

0. 5
1. 0
- 0. 2

1. 1
0. 4
2. 1

0. 1

- 1. 1

2. 0

-1 . 5

2. 2

1. 3

4. 8

0

- 6. 4

0. 2

0. 6

4. 7

2. 8

8. 1

5. 1

- 2. 8

0. 4

-1 5 . 1

-4 . 5

0. 4

10. 7

0. 2

1. 7

4. 3

1. 6

2. 6

0. 5

2. 2

- 1. 6

1. 5

1. 6

- 6. 0

0. 8

0. 3

0. 8

0

0

0. 4

0. 3

0. 3

0. 7

0. 2

1. 9

0. 9

0

0. 1

1. 4

0. 3

3. 6

3. 8

6. 6

- 0. 2

-5 . 5

-1 . 9

- 0. 7

- 1. 6

0. 9

0. 3

0. 3

0. 5

0. 5

0. 5

0. 8

- 0. 1

-3 . 5

- 1. 2

-1.4

- 0. 8

0. 1

1. 8

T a b le 1# W h o le s a le P r i c e In d e x e s f o r F a r m P r o d u c t s , P r o c e s s e d F o o d s , cond,
and In d u s tr ia l C o m m o d i t i e s
Q u a r t e r l y P e r c e n t C h a n g e s — C on tin u ed
[N ot s e a s o n a l l y a d ju s t e d ]

1966

In d u s tr ia l c o m ­
m o d i t i e s cont*d
In term e­
d ia te m a ­
teria ls . . .
F in is h e d
goods
Consum er
nondur­
a b le s • . .
C onsum er
d u r a b le s
P roducers1
goods . .




D e c. 1965 M a r c h June
to
to
to
M arch
Sept.
June

Sept. D e c. 1 966 M a r c h June
to
to
to
to
M arch
Sept.
D ec.
June

Sept.
to
D e c.

0. 7

1. o

0. 2

0

0.5

- 0.1

0.4

0. 8

0. 4

O
00

W h o le s a le
p rice in -

1967

0. 5

0. 1

0.9

0. 8

0.7

0

0. 1

0. 4

-0 . 1

1 .3

0

-0 . 3

0.4

1. 6

0. 8

1. 0

0. 5

1. 7

0.5

0. 5

0.4

1. 6

11

T a b le 2. C o n s u m e r P r i c e In d ex es F o r S e le c t e d C o m m o d i t i e s
Q u a r t e r l y P e r c e n t C h an ges
[N ot s e a s o n a l l y a d ju s t e d ]
1967

1966
C onsum er
P r i c e In­
dexes
A ll Item s
S e rv ice s . . . .
A ll c o m ­
m od ities . . . .
A ll c o m ­
m od ities
l e s s food . . .
F o o d .............
F o o d away,
from hom e
F o o d at h om e. .
M e a t s ................
B e e f and V ea l
P o r k .............
C h ic k e n ,
fr y in g . . . .
A ll d a i r y
produ cts. . .
M ilk ,
grocery. . .
C heese. . . .
F r u it s and
v e g e t a b le s . . .
F r e s h f r u it s
and v e g e ­
t a b le s . . .
P rocessed
f r u it s and
v e g e t a b le s .
C e r e a l s and
bakery p r o ­
d u cts .............
B reads
w h ite . . . .
E g g s ................
N o n a lc h o lic
beverages

12



D ec. 1965 M a r c h
to
to
M arch
June

June
to
Sept.

Sept. D e c . 1966 M a r c h June Sept.
to
to
to
to
to
M arch
D e c.
June Sept. D e c.

0.9

0. 8

1.1

0.5

0. 3

0.9

0.9

0.9

■
0.7

1. 6

1.2

1.4

0. 9

0.9

1. 0

1.1

0.9

0. 6

0.9

0. 1

- 0. 1

0.9

0.9

0. 8

- 0. 1

0. 8
0

0. 6
1. 5

0.7

1. 0

- 0.7

0. 1
-0. 5

1. 0

3.0

0. 8

0. .7

1. 0
0. 3

1.1

1. 3

1. 5

1.4

1. 1

1. 1

1. 3

1. 2

3.4
5.7
4. 6
7. 2

-0 .
-2.
-1.
-5.

3
7
0
9

1.
0.
-0 .
2.

5
5
1
0

-

1.2
3.2
0.7
9. 1

-1 .
-1 .
-0 .
-2.

0
2
4
4

0. 7
2 .4
1. 2
6. 1

0.
1.
2.
-0 .

0
5
4 -1. 9
5
0. 2
2 -6 . 2

13. 6

-4 . 1

-0. 2

- 9.2

1. 8

-3 . 7

5. 4

-4 .5

1. 9'

1. 4

5. 8

0.4

0. 7

0. 5

0. 9

0. 7

1. 7
5. 6

0. 7
3. 5

5. 8
6. 0

0. 6
1. 1

-1 . 1
-0 . 9

0. 5
-1. 0

1. 4
-0 . 1

1. 1
0. 4

5. 8

3. 7

-4. 2

-2 . 0

0. 8

4. 1

-3. 6

3. 5

9. 4

6. 8

-6 . 6

-2. 9

2. 2

6. 8

-7 . 2

3. 3

0. 7

-0. 6

-0. 6

-0. 4

-1. 4

0

2. 3

3. 5

1. 2

1. 0

3. 2'

0. 3

-0. 2

-0 . 3

0. 1

0

2 .4
- 1. 0

1. 1
-17. 9

5. 2
25. 5

-0. 3
0. 1

-1. 3
-1 7 . 2

-0. 1
-15. 3

-0 . 7
14. 7

0
-2. 0

-0 .2

1. 5

-0 . 2

-0. 9

-0. 7

0

0. 1 - 0 . 1

T a b le 2 , C o n s u m e r P r i c e In d ex es F o r S e le c t e d C o m m o d i t i e s — C on tin u ed
Q u a r t e r l y P e r c e n t C h an ges
[N o t s e a s o n a l l y a d ju s te d ]
1967

1966
C onsum er
P r i c e In ­
dexes

D e c. 1965 M a r c h
to
to
M arch
June

N o n d u r a b le
C o m m od ities
Less Food . . .
A pparel le s s
footw ear . . .
W om en*s
and g ir ls *
M e n ’ s and
boys* ..........
Footw ear . . . .
T ex tile h o u s e f u r n is h in g s
F u e l o i l and
c o a l ...............
F u e l o i l #2 • •
G a s o lin e . . . . .
D r u g s and
p rescrip tion s
T o i l e t g o o d s •. 1
Tobacco
products . . •
A lcoh olic
b e v e r a g e s ••




Sept. D e c. 1 966 M a r c h June
to
to
to
to
M arch
June Sept.
D e c.

Sept.
to
D e c.

1.2

- 0.4

0. 6

0. 1

0.4

- 0.2

1.2

0.7

- 1. 6
-2 . 4
-0. 3

-0 .3
2. 4
2. 2

-2. 5
1. 6
0. 6

4.4

- 1.4

5.4

1. 5
0.4

- 0.4
5. 6
1. 2

- 0.7

- 4.9

3. 1
2.4

- 1.1

0. 1
-0 . 2
-0. 4

0. 5
-0. 4
-0 . 1

0. 6
0
-0 . 5

0.4

0.1

- 0. 1

0.2

- 0.5
- 1. 0

0. 2
-0 . 2
-1. 4

0.4
0.1
-0. 8

0.7
0.5
0. 6

0. 8

1. 3

1. 0

1.4

0. 6

0. 7

0. 8

1. 2

0

0. 1

0. 5

0. 1

-0. 2

-0 . 5

0. 5

0. 6

0. 2

00
•
0

D u r a b le C o m ­
m od ities
|
New c a r s . . . .
U sed c a r s • • • •
T i r e s , new* • •
H o u s e h o ld
d u r a b le s • - • •
A p p l i a n c e s ••
T V s et s • • • •
F u r n it u r e and
b e d d in g . . . !
F lo o r
i
cov e rin g . . •

June
to
Sept.

0. 9

0. 8

0. 4

0. 8

1. 2

1. 0

-0. 3

0. 8

1. 3

1. 3

0. 2

1. 2

1. 3

1. 6

-0 . 4

0. 8

1. 5

1. 7

0. 1

1. 4

1. 3

2. 3

-0. 3
1. 1

1. 0
2. 5

1. 0
1. 3

1. 3
1. 3

0. 1
1. 1

1. 2
1. 0

1. 2
0. 8

1. 1
1. 2

-0 . 6

1. 1

1. 3

1. 4

0

0. 5

-0 . 1

1. 6

0. 3
0. 3
0. 4

-1. 7
-1. 5
0. 7

0. 4
0. 1
1. 7

2. 6
2. 8
0. 5

0. 8
0. 8
0. 5

-0 . 5
-0. 4
1. 3

1. 6
1. 4
0. 9

0. 7
0. 7
- 1. 4

0. 3
0. 6 .

0. 2
0. 3

-0. 1
0. 3

-0. 2
0. 3

-0. 3
0. 3

-0 . 3
0. 7

0. 2
0. 8

0. 2
0. 2

0. 2

1. 9

1. 2

0. 2

0

0 .4

4. 0

1. 8

0. 4

0. 5

0. 4

0

0. 7

0. 3

1. 5

1. 0

0

3.0

13

CHAPTER II
Farm Product and Food Prices
B e t w e e n the s p r in g o f 1965 and the
f a l l o f 1966, p r i c e s o f f a r m p r o d u c t s
and fo o d r o s e s u b s ta n tia lly . A runup
in l i v e s t o c k and m e a t p r i c e s s p a r k e d
the 1965 a d v a n c e . H ig h e r p r i c e s f o r
m e a t s u b s titu te s s o o n f o l l o w e d and,
in 1966, the i n c r e a s e s s p r e a d t h r o u g h ­
out the a g r i c u l t u r a l s e c t o r .
D u rin g
t h e s e 18 m o n th s , the a v e r a g e g r o c e r y
b i l l r o s e 8 - 1 / 2 p e r c e n t . (See t a b le 1. )
F a r m p r o d u c t and fo o d p r i c e s
b e g a n to d e c l i n e in the f a ll o f 1966,
l a r g e l y b e c a u s e o f exp an d in g l i v e ­
s t o c k p r o d u c t io n , and c on tin u ed down
in e a r l y 1967. A f t e r r i s i n g at m i d ­
y e a r both f a r m and fo o d p r i c e s r e ­
s u m e d t h e ir d o w n tr e n d . In D e c e m b e r ,
they turned up s h a r p ly . (See ta b le 2. )

Chart 5. Food Prices: Farm, Wholesale, and Retail

Index (1957-59= 100)

14



D e s p it e the d e c r e a s e s w h ic h h av e
tak en p l a c e s i n c e the f a l l o f 1966,
p r i c e s a v e r a g e d s u b s t a n t ia lly h ig h e r
d u r in g 1967 than b e f o r e the 1 9 6 5 -6 6
u p t u r n —f a r m p r o d u c t s 6 p e r c e n t ,
w h o l e s a l e p r o c e s s e d fo o d 9 p e r c e n t ,
and g r o c e r y fo o d 7 p e r c e n t . It a p ­
p e a r s u n lik e ly that f a r m p r o d u c t and
fo o d p r i c e s w ill s o o n r e t u r n to the
r e l a t i v e l y low l e v e l s r e a c h e d p r i o r
to t h e ir 1 9 6 5 -6 6 ju m p f o l l o w i n g a 6 y e a r d e c lin e .
Supply and Demand

Supply and d e m a n d f a c t o r s c o m ­
b in ed in 1965 and 1966 to c r e a t e a
c l i m a t e f a v o r a b l e to h ig h e r p r i c e s ,
although the l a r g e s t i n c r e a s e s w e r e
c h i e f l y due to l i m it a t io n s o f supply.
S e v e r a l y e a r s o f d e c lin in g l i v e s t o c k
p r i c e s had c a u s e d f a r m e r s to cut
b a c k p r o d u c t io n .
F a v o ra b le farm
a lt e r n a t iv e s to d a ir y in g and s h o r t a g e s
o f f a r m l a b o r , a s w e l l as o t h e r d e v e l ­
o p m e n t s , r e d u c e d 1966 m ilk p r o d u c ­
tion to a 1 3 - y e a r low . Bad w e a t h e r
—u n s e a s o n a b le f r e e z e s and s e v e r a l
y e a r s o f s u m m e r d r o u g h t —c u r t a ile d
s o m e f r u it and v e g e t a b le c r o p s and
m a d e f a r m e r s u s e c o s t l y f e e d in s te a d
o f p a s t u r e f o r b e e f and d a i r y h e r d s .
A t the s a m e t im e , d e m a n d i n ­
c r e a s e d s u b s ta n t ia lly . H ig h er i n c o m e
l e v e l s e n a b led m o r e p e o p l e to buy
m o r e e x p e n s i v e f o o d s , the V iet Nam
buildup i n c r e a s e d p u r c h a s e s b y the
A r m e d F o r c e s , and f a r m e x p o r t s —
p u sh ed by su ch even ts as the th r e a t
o f f a m in e in India — con tin u ed to r i s e .
O v e r the lo n g - r u n , p o p u la tio n gr o w th

and r i s i n g i n c o m e s h ave i n c r e a s e d
c o n s u m e r s p en d in g f o r fo o d a l m o s t
ann ually s i n c e the end o f W o r ld W ar
II. In 1966, sp en d in g f o r fo o d (in
c o n s ta n t d o l l a r s ) s lo w e d , but r e t a i l
fo o d p r i c e s a d v a n c e d f a s t e r f o r , as
in m o s t y e a r s , the p r i c e flu c tu a tio n s
in 1965 and 1966 r e f l e c t e d c h a n g e s in
su p p ly m o r e d i r e c t l y than c h a n g e s in
d em a n d .

Supply c h a n g e s w e r e a l s o the c h i e f
d e t e r m in a n t s o f the 1967 p r i c e tr e n d s .
E x p a n d in g p r o d u c t io n c a u s e d the p r i c e
d r o p b e t w e e n the autum n o f 1966 and
th e s p r in g o f 1967; t e m p o r a r i l y c u r ­
ta ile d s u p p lie s o f l i v e s t o c k and v e g e ­
t a b le s t r i g g e r e d the s u b s e q u e n t p r i c e
i n c r e a s e s ; and exp an d ed h o g and p o u l |try p r o d u c t io n , r e c o r d g r a in c r o p s ,
'and the flo o d in g o f the m a r k e t b y d e -

P e rce n t in c r e a s e fro m p reviou s year
C P I:

Food

P C E : F o o d and bev.
(1958 d o l l a r s )

i 9 6 0 .................................. 1.1
1 .2
1961 ..............................
1962 ...............
1. 0
1 .4
1963 ...................................
1 .2
1964 ...............____
1965 ................ . .
.
2. 3
5. 0
1966 ...............
1967 ..............._____ . . . .
0 .9

1.
1.
2.
1.
4.
4.
2.
2.

5
6
2
5
1
2
9
6

F o o d and beverage
as a p e r c e n t
o f to ta l P C E
25.
25.
24.
24.
23.
23.
22.
22.

6
5
8
1
7
2
8
7

The N a tion a l I n c o m e and P r o d u c t A c c o u n t s o f the United S tates, 1 9 2 9 -1 9 6 5 and
S u r v e y o f C u r r e n t B u s i n e s s , Ju ly 1967. O f f i c e o f B u s i n e s s E c o n o m i c s ,
D epartm ent of C o m m e r c e .

la y e d v e g e t a b le h a r v e s t s a c c o u n t e d
f o r the s lid e in f a r m p r o d u c t p r i c e s
a f t e r July 1967. H o w e v e r , s u p p ly d em a n d c o n s i d e r a t i o n s a lo n e m a y not
e x p la in f u llv the s h a r p 1 9 6 5 -6 6 u d rurn and S u bsequen t dow nturn. A
r e c e n t l y p u b lis h e d a r t i c l e P j m a k e s
the p oin t that, in the m a r k e t e n v i r o n ­
m e n t w h ic h e x is t s f o r m o s t f a r m
com m od ities, p r ic e s m ay o v e r r e a c t:
MIn fa c t, the u p w ard m o v e m e n t
o f a g r i c u l t u r a l p r i c e s in m u c h
o f 1966 m a y h a v e r e f l e c t e d c o n ­
s i d e r a b l e s p e c u la t io n b a s e d

upon a n t ic ip a t e d w o r l d fo o d
s h o r t a g e s in a d d itio n to the
p r i c e i n c r e a s e r e s u lt in g f r o m
a d e clin in g -su p p ly , stro n g d em a n d in t e r a c t io n . F o llo w in g
this d e d u c tio n a step f u r t h e r ,
to the 10 p e r c e n t d r o p in f a r m
p r i c e s f r o m S e p t e m b e r 1966
to A p r i l 1967, m ig h t le a d one
to c o n c l u d e that m o s t o f the
p r i c e s o f t n e s s o f the p a s t w i n ­
t e r can b e a ttr ib u te d to a
c o u n t e r - r e a c t i o n f r o m the
s h a r p i n c r e a s e s d u rin g 1965
and e a r l y 1966, o n c e the w o r l d

5 / " T h e I m p a c t o f F a r m P r i c e s on W h o le s a le and R e t a il P r i c e L e v e l s " b y
G en e L. S w a c k h o m e r . In M onthly R e v ie w o f the F e d e r a l R e s e r v e Bank o f
K ansas C it y , S e p t e m b e r - O c t o b e r 1967, p a g e 9.




fo o d d em an d i s s u e m a tu r e d in
p ersp ectiv e. n
A s in p r e v i o u s y e a r s , G o v e r n m e n t
f a r m p r o g r a m s s e r v e d as a c o u n t e r ­
w e ig h t to the f r e e p la y o f the f o r c e s
o f su p p ly and d em an d . A lth ou g h t h e ir
e x a c t i m p a c t on 1 9 6 5 -6 7 f a r m and
fo o d p r i c e s is d if f ic u lt to a s s e s s , the
r o l e o f G o v e r n m e n t p r o g r a m s —p r i c e
supports, a c r e a g e c o n tro ls , im p ort
q u o ta s , and p u r c h a s e s f o r e x p o r t o r
f o r c i v i l i a n and m i l i t a r y u s e — w a s
c o n s i d e r a b l e . In s o m e i n s t a n c e s ,
a t t e m p ts w e r e m a d e to c u r t a i l G o v ­
e r n m e n t p u r c h a s e s f o r m i l i t a r y and
d o m e s t i c u s e w hen p r i c e s r o s e s u b ­
s ta n tia lly and to expand them w hen
p r i c e s fe ll. A f t e r the s h a r p d e c l i n e
in f a r m p r o d u c t p r i c e s in the fa ll o f
1966, a c t io n s w e r e taken to r a i s e
m i l k s u p p o r t p r i c e s , to c u r t a i l i m ­
p o r t s o f d a i r y p r o d u c t s , and to r e ­
d u c e w h eat a c r e a g e .
__
O t h e r in f lu e n c e s d im in is h in g the
c o m p e t i t i v e n a tu re o f today*s a g r i ­
c u lt u r a l p r i c e s t r u c t u r e in c lu d e the
g r o w th o f the l a r g e , c o r p o r a t e f a r m
and the v e r t i c a l in t e g r a t io n o f s o m e
im p o r t a n t f o o d - p r o d u c i n g s e c t o r s .
T o g e t h e r with the f i r s t s t i r r i n g s o f
l a b o r o r g a n iz a t io n and m i n i m u m w a g e g u a r a n t e e s , this m a y m a k e the
a g ricu ltu ra l s e cto r in cre a s in g ly s u s ­
c e p t i b l e to " c o s t - p u s h ’ 1 p r e s s u r e s
g e n e r a l l y a s s o c i a t e d on ly with m a n u ­
f a c t u r in g in d u s t r ie s .
Rising Cost and the Farm -R etail
P ric e Spread

When p r i c e s o f b r e a d and d a ir y
p r o d u c t s s p u rte d u p w ard in m i d - 1 9 6 6 ,
f o l l o w i n g the e a r l i e r r i s e in m e a t
p r i c e s , the U.S. D e p a r t m e n t o f A g r i ­
c u lt u r e r e q u e s t e d the F e d e r a l T r a d e

C o m m i s s i o n to m a k e a s p e c i a l a n a ly ­
s is o f the r e a s o n s f o r the h ig h e r b r e a d
and m i l k p r i c e s .
T h e r e p o r t to the
H ouse o f R e p r e s e n t a t i v e s s ta te d : 6 /
"In c o n c l u s i o n , this p r e l i m i ­
n a r y r e v i e w in d ic a t e s that
r e c e n t p r i c e i n c r e a s e s in
b r e a d and m i l k m a y b e a t t r i ­
buted to the f o l l o w i n g : (1)
F a rm p r ic e s r o s e b eca u se of
r a d i c a l l y c h a n g e d s u p p ly d em a n d c o n d it io n s . In m ilk ,
w h e r e the g r e a t e s t f a r m p r i c e
in c r e a s e s o c c u rr e d , farm
p r i c e s had b e e n s e v e r e l y d e ­
p r e s s e d fo r o v e r a decade.
In b r e a d , the r e c e n t r i s e in
w h ea t p r i c e s r e f l e c t e d a s h a r p
r e v e r s a l in the s u p p ly -d e m a n d
situ a tio n w ith r e s p e c t to the
1966 w h eat c r o p .
(2) B r e a d
and m i l k p r o c e s s o r s as a g r o u p
not o n ly p a s s e d on the i n ­
c r e a s e s in in g r e d ie n t c o s t s
but ad d ed to t h e ir own m a r g i n s
as w e ll. P a r t o f t h e s e m a r g i n
i n c r e a s e s r e f l e c t o th e r c o s t
i n c r e a s e s w h ile p a r t m a y h a v e
ad d ed to p r o f i t s w h ic h had p r e ­
viou sly been d ep ressed .
(3)
B e c a u s e o f the p r a c t i c e o f
taking a f ix e d p e r c e n t a g e m a r ­
gin, r e t a i l e r s ten d ed to p y r ­
a m id the p r i c e i n c r e a s e s g e n ­
e r a t e d at the f a r m and p r o c e s s o r
levels. "
T h e r e a s o n s p in p oin ted in the
F e d e r a l T r a d e C o m m i s s i o n s ta te m e n t
can be a p p lie d m o r e g e n e r a lly . In
a d d itio n to s u p p ly and d em a n d in f lu ­
en ces, risin g co sts have been a m a jo r
f a c t o r c a u s in g f o o d p r i c e s to i n c r e a s e
and k e e p in g th em f r o m d e c r e a s i n g
s u b s ta n t ia lly w hen f a r m p r i c e s f e ll.

4 / E c o n o m i c R e p o r t on M ilk and B r e a d P r i c e s , a r e p o r t by the F e d e r a l
T r a d e C o m m i s s i o n , N o v e m b e r 1966, p r in te d f o r u s e o f the C o m m i t t e e on
G o v e r n m e n t O p e r a t io n s , H o u se o f R e p r e s e n t a t i v e s , 89th C o n g r e s s , p. 3.
16




C o s t s o f ra w f a r m p r o d u c t s a c c o u n t
f o r on ly abou t 40 p e r c e n t o f the p r i c e
o f d e l i v e r e d f o o d s ; the r e m a i n d e r r e ­
f l e c t s c o s t s o f t r a n s p o r t a t io n , p r o ­
c e s s i n g , d is t r ib u t io n , and m a r k e t in g .
E v e n in the y e a r s w hen f a r m p r o d u c t
p r i c e s h a v e d e c lin e d , t h e s e c o s t s
ha v e tended to r i s e and, in r e c e n t
y e a r s , the i n c r e a s e has a c c e l e r a t e d .
L a b o r c o s t s , w h ic h a c c o u n t f o r o v e r
40 p e r c e n t o f m a r k e t in g c h a r g e s , h a v e
r i s e n s u b s ta n t ia lly ; p r i c e s o f c o n ­
t a in e r s and m o s t oth e r it e m s bought
b y f o o d p r o c e s s i n g and m a r k e t in g
f i r m s h a v e g o n e up s h a r p ly ; and
f r e i g h t r a t e s , r e n t s , and m a n y o th e r
c o s ts have a lso in cre a se d .
M ore­
o v e r , p r o f i t s a f t e r t a x e s r o s e until
1967 7 / and, a lo n g w ith c o s t in ­
c r e a s e s , h a v e b e e n r e f l e c t e d in
r i s i n g unit m a r k e t in g c h a r g e s to the
consum er.
The p h e n o m e n a l g r o w t h o f a g r i ­
c u lt u r a l p r o d u c t i v i t y s i n c e the end
o f W o r ld W ar II has b e e n a b a s i c f a c ­
t o r in m a in ta in in g p r i c e s t a b ilit y f o r
f a r m p r o d u c t s and in c a u s in g the
p r i c e s lid e b e t w e e n 1958 and 1964.
P r o d u c t i v i t y ga in s in the a g r i c u l t u r a l
s e c t o r h a v e o u tp a c e d t h o s e in n o n ­
f a r m in d u s t r ie s and h a v e m a d e f a r m
p r i c e s m o r e s u s c e p t i b l e to d ow n w a rd
p r e s s u r e s than p r i c e s in the n o n a g r i c u lt u r a l i n d u s t r ie s .
T w o o th er f a c t o r s —p r o d u c e r c o m ­
p e t itio n and p r o d u c t p e r i s h a b i l i t y h a v e an im p o r t a n t e f f e c t in m a k in g
c r u d e f o o d s t u f f s p r i c e s m o r e s u b je c t
to d o w n w a rd p r e s s u r e s than p r o ­
c e s s e d foods.
F a rm ers are m ore
d i s p e r s e d and g e n e r a l l y do not c o n t r o l
the m a r k e t f o r t h e ir p r o d u c t .
M any
f a r m p r o d u c t s ca n n ot be s t o r e d p r o ­
f it a b ly and m u s t b e s o ld w hen h a r ­
v e s t e d , ev e n if the p r i c e f a l l s d r a s ­
t ic a lly . In c o n t r a s t , p r o c e s s i n g

c o m p a n i e s , w h o l e s a l e d i s t r i b u t o r s , and
r e t a il fo o d ch a in s a r e m u c h m o r e
h ig h ly o r g a n iz e d , and the l a r g e r c o m ­
p a n ie s ca n r e s i s t flu c tu a t io n s c a u s e d by
the i m m e d i a t e s u p p ly - and d e m a n d situ ation.
F u r t h e r m o r e , as p r o c e s s i n g
is c o m p l e t e d , m a n y o f the f o o d s can be
s t o r e d and this, in turn, p e r m i t s
g r e a t e r r e s i s t a n c e to p r i c e r e d u c t io n s .
T h e i m p a c t o f t h e s e f o r c e s is e v i ­
d e n c e d by the s p r e a d b e t w e e n f a r m
p r o d u c t and f o o d p r i c e s , both b e f o r e
and a f t e r the 1 9 6 5 -6 6 upturn. In 1964,
fa rm produ ct p r ic e s w e re a p p rox im a tely
6 p e r c e n t b e lo w t h e ir 1 9 5 7 -5 9 a v e r a g e ,
but f o o d p r i c e s w e r e 1 p e r c e n t h ig h e r
at w h o l e s a l e and 5 p e r c e n t in the g r o ­
c e r y s t o r e . A lth ou g h r i s i n g f a r m p r i c e s
n a r r o w e d the f a r m - r e t a i l s p r e a d in
1965 and 1966, f a llin g f a r m p r i c e s
a g ain w id e n e d the gap in 1967.
Specific P rice Trends

B e c a u s e o f the m a g n itu d e and r a p i d ­
ity o f the p r i c e c h a n g e s s i n c e 1965 f o r
f a r m p r o d u c t s and fo o d , t h e s e c o m m o d ­
it ie s h a v e a f f e c t e d the o v e r a l l p r i c e
in d e x e s b ey on d t h e ir r e l a t i v e i m p o r ­
ta n c e in e a c h index. F a r m p r o d u c t s
a c c o u n t f o r o n ly 11 p e r c e n t o f the
c o m m o d i t i e s in the W h o le s a le P r i c e
Index, and p r o c e s s e d f o o d s and f e e d s ,
15 p e r c e n t .
In the C o n s u m e r P r i c e
Index, " f o o d at h o m e " r e p r e s e n t s
about 18 p e r c e n t o f the it e m s and
" f o o d aw a y f r o m h o m e " a n oth er 4 1 / 2
percen t.
T h e am ou n t o f i n c r e a s e v a r i e s c o n ­
s i d e r a b l y a m o n g the v a r i o u s c o m ­
m o d i t i e s and b e t w e e n the w h o l e s a l e
and r e t a i l l e v e l s .
(See ta b le 3. )
B e c a u s e o f the s h a r p d ow n tu rn s i n c e
la te 1966, s o m e 1967 p r i c e s a r e not
on ly b e lo w 1966 but a l s o l o w e r than in
1964. F o r " f o o d aw a y f r o m h o m e , "

]_/ P r o f i t s p e r d o l l a r o f s a l e s b y fo o d and k in d re d p r o d u c t m a n u f a c t u r e s .
Q u a r t e r l y F in a n c ia l R e p o r t f o r M a n u fa c tu r in g C o r p o r a t i o n s , F e d e r a l T r a d e
C o m m i s s i o n - S e c u r it y E x c h a n g e C o m m i s s i o n .




17

T a b le 3.

W h o le s a le P r i c e In dexes f o r F a r m P r o d u c t s and P r o c e s s e d
F o o d s , and C o n s u m e r P r i c e In dexes f o r F o o d s , 1 9 6 4 -6 7 .
P e r c e n t ch a n g e

Annual a v e r a g e s
W h o le s a le and c o n s u m e r
p r i c e in d e x e s

1964

1965

1966 | 1 9 6 7 ^

1 9 6 4 -6 7

(1957-!!59 = 100)
5. 6

100. 5

102. 5

105. 9

106. 1

F a r m p r o d u c t s . . . 7 ....................
L i v e s t o c k ....................................
P o u l t r y ................. .......................
E g g s ...............................................
M i l k ...............................................
G r a i n s ............................................
W h e a t ..........................................
F r e s h and d r ie d f r u it s
and v e g e t a b l e s ......................

94.
85.
82.
90.
102.
94.
88.

98.
100.
87.
93.
103.
89.
75.

4
5
2
5'
5
6
0

105. 6
1 1 0 .0
91. 4
107. 9
117. 6
97. 3
84. 8

99.
101.
82.
84.
122.
92.
79.

103. 2

101. 8

102. 5

101. 6

-1.J&

P r o c e s s e d f o o d s .........................
M e a t s ............................................
D a ir y p r o d u c t s .........................
C e r e a l and b a k e r y p r o d u c t s
B r e a d ..........................................

101.
89.
107.
107.
107.

105.
100.
108.
109.
108.

1
8
5
0
4

1 1 1 .5
109. 9
118. 5
115. 4
116. 5

110.
105.
122.
117.
120.

9.
18.
13.
8.
11.

116. 3

W h o le s a le p r i c e i n d e x . . . . . . . . .

3
0
0
8
0
1
7

0
0
8
8
9

7
1
2
3
0
2
9

3
5
0
1
0

C o n s u m e r p r i c e i n d e x ....................

108. 1

109. 9

113. 1

F o o d aw a y f r o m h o m e ....................
F o o d at h o m e .......................................
M e a t s .................................................
P o u l t r y ............................................
E g g s ....................................................
D a ir y p r o d u c t s ...................... ..
M i l k ...............................................
C h e e s e ..........................................
C e r e a l and b a k e r y p r o d u c t s .
B r e a d ............................................
F r e s h fr u it s and v e g e t a b l e s .

1 15.
104.
99.
87.
95.
104.
103.
113.
109.
113.
119.

117. 8
107. 2
106. 9
90.3
92. 8
105. 0
102. 8
116. 6
111. 2
114. 7
121. 7

123. 2 j 129. 6
112. 6 112. 3
116. 8 113. 8
95.6 ! 88. 4
105. 7
88. 4
1 1 1 .8 116. 7
109. 4 113. 8
130. 6 136. 3
115. 8 118. 5
121. 7 123. 8
123. 9 124. 3

2
7
4
3
0
7
3
4
6
3
2

5.
18.
0.
-7 .
19.
-2 .
-9 .




2
5
2
6
2

7. 6
12.
7.
14.
1.
-6 .
11.
10.
20.
8.
9.
4.

■^Most o f the d e c r e a s e in w heat and g r a in p r i c e s in 1965 r e s u lt e d f r o m a
c h a n g e in the m e th o d o f c o m p e n s a t in g f a r m e r s e m b o d ie d in le g i s l a t i o n
w h ich b e c a m e e f f e c t i v e on July 1, 1964.

18

7
9
2
2
6
0
9

5
3
5
3
9
5
2
2
1
3
3

w h ic h in c lu d e s a l a r g e s e r v i c e c o m ­
ponent, the p r i c e up trend —a lw a y s
c o n s i d e r a b l e — in t e n s ifie d .
L i v e s t o c k , M e a ts, and P o u lt r y .
Ju st as f a llin g c a t t le and h og p r i c e s
w e r e m a j o r f a c t o r s in d e p r e s s i n g
a g r i c u l t u r a l p r i c e s p r i o r to 1964,
risin g liv e s to c k p r ic e s w e re la rg e ly
r e s p o n s i b l e f o r the f a r m p r o d u c t and
fo o d p r i c e i n c r e a s e s d u rin g the next
2 years.
The 1965 to e a r l y 1966 r u n ­
up in l i v e s t o c k and m e a t p r i c e s , as
w e l l as the s u b s e q u e n t d e c l i n e in la te
1966, c a m e l a r g e l y f r o m c h a n g e s in
the su p p ly o f h o g s and p o r k .
M any
f a r m e r s , d i s c o u r a g e d by the low
p r i c e s they had b e e n r e c e i v i n g f o r
s e v e r a l y e a r s , had cut b a c k th e ir
1 9 6 4 -6 5 p ig p r o d u c t io n . A s hog and
p o r k p r i c e s s k y r o c k e t e d in 1965, h o g
r a i s e r s b o o s t e d f a r r o w i n g s by 10
p e r c e n t in the s p r in g o f 1966 and,
w hen t h e s e a n im a ls w e r e m a r k e t e d in
the fa ll, h og and p o r k p r i c e s d r o p p e d
d ra stica lly .
The la te 1966 d o w n tren d con tin u ed
into 1967 f o r h og and p o r k p r i c e s
w h ich , a f t e r r i s i n g s u b s ta n t ia lly in
the s e c o n d q u a r t e r , f e l l a f t e r m i d ­
y e a r w ith exp an d in g p ig p r o d u c t io n .
In c o n t r a s t , c a t t le and b e e f p r i c e s
a d v a n c e d s u b s ta n t ia lly d e s p it e i n ­
c r e a s e d c a t t le p r o d u c t i o n and turned
dow n l e s s than s e a s o n a l l y la te in the
year.
P r i c e s f o r p o u lt r y f o l l o w e d a
s o m e w h a t s i m i l a r p a ttern , r i s i n g and
f a llin g w ith t h o s e f o r r e d m e a t s , p a r ­
ticu la rly pork.
M any c o n s u m e r s ,
d i s c o u r a g e d b y high m e a t p r i c e s ,
turned to the l o w e r p r i c e d p o u lt r y as
a su bstitu te. A lth ou g h b r o i l e r p r o ­
d u c tio n i n c r e a s e d c o n s i d e r a b l y m o r e
in 1965 and in 1966 than d u r in g the
p r e v i o u s 3 y e a r s , the shift in d em an d
w a s s u ff ic ie n t to c a u s e p o u lt r y p r i c e s
to trend s h a r p ly u p w ard th rou g h the
s p r in g o f 1966. B y the end o f 1966,
h o w e v e r , both w h o l e s a l e and r e t a i l
p r i c e s o f p o u lt r y had d r o p p e d s u b ­
s ta n tia lly , and, a f t e r r i s i n g e a r l y in




1967, w h o l e s a l e p o u lt r y p r i c e s slid
downward th erea fter.
In 1967, p o u l ­
t r y p r i c e s a v e r a g e d w e l l b e lo w t h e ir
1966 l e v e l —the h ig h e s t s i n c e I960.
T h ro u g h o u t the 1960*s, p o u lt r y p r i c e s
h a v e b e e n m a r k e d l y l o w e r than in the
1950*8.
M ilk and D a ir y P r o d u c t s . A s m ilk
p r o d u c t i o n in 1966 f e l l to the l o w e s t
p oin t in 1 3 y e a r s , the p r i c e s f a r m e r s
r e c e i v e d ju m p e d u p w a rd , eq u a lin g
t h e ir 1948 r e c o r d high.
The n u m b e r
o f m i l k c o w s f e l l 6 p e r c e n t in 1965
and a n o th e r 5 p e r c e n t in 1966, c o m ­
p a r e d w ith the a v e r a g e 2 1 / 4 p e r c e n t
annual d o w n tre n d s i n c e 1950, as high
p r i c e s f o r b e e f c a t t le s tim u la te d m u c h
s h a r p e r than u s u a l liq u id a t io n o f c o w
herds.
In a d d ition , the c u m u la t iv e
e f f e c t s o f the 5 - y e a r d r o u g h t in the
N o r t h e a s t e r n States and f a v o r a b l e
f a r m a lt e r n a t iv e s to d a ir y in g h e lp e d
to r e d u c e m i l k p r o d u c t i o n as w e l l as
to r a i s e c o s t s o f d a i r y fa r m in g .
I n c r e a s in g s h o r t a g e s o f l a b o r w e r e
r e p o r t e d as o p p o r t u n it ie s f o r o f f f a r m e m p lo y m e n t a t t r a c t e d l o w - p a i d
f a r m w o r k e r s , and as m o r e you ng
m e n w e r e in d u cted into m i l i t a r y
s e rv ice .
M o r e o v e r , the l o n g - t e r m
tren d t o w a r d f e w e r and l a r g e r d a ir y
f a r m s in t e n s ifie d .
The n u m b e r o f
d a i r y f a r m s f e l l abou t 10 p e r c e n t in
1965 and a n o th e r 10 p e r c e n t in 1966.
At the s a m e t im e , total d o m e s t i c
c o n s u m p t io n o f flu id m i l k and d a i r y
p r o d u c t s con tin u ed to r i s e .
M ilit a r y
u s e exp an d ed g r e a t l y b e t w e e n 1964
and 1966, and c o n s u m p t io n f o r s c h o o l
lunch and oth er s p e c i a l p r o g r a m s a l s o
i n c r e a s e d . A s a r e s u l t o f the c h an g ed
s u p p ly -d e m a n d situ a tion , f a r m p r i c e s
f o r m i l k a d v a n c e d s t e a d ily a f t e r m i d 1965. When s u p p o r t p r i c e s w e r e
r a i s e d in m i d - 1966 to e n c o u r a g e d a ir y
f a r m in g , m ilk p r i c e s s p u rte d u pw ard.
W h o le s a le m ilk p r i c e s tu rn ed down
in the f a ll o f 1966, and r e t a i l p r i c e s
d e c r e a s e d s lig h t ly in e a r l y 1967. S in ce
the s p r in g , h o w e v e r , both w h o l e s a l e
and r e t a i l m ilk p r i c e s h ave b e e n r i s i n g
19

and, in 1967, a v e r a g e d c o n s i d e r a b l y
a b o v e t h e i r a l r e a d y hig h 1966 l e v e l s —
f o r a t o t a l r i s e o f o v e r 10 p e r c e n t
s i n c e 1964. M ilk p r i c e s at the f a r m
l e v e l ju m p e d 20 p e r c e n t o v e r the 3
years.
P r i c e s of m anufactured d a iry p r o ­
d u c t s , s u ch as c h e e s e and b u tter,
r o s e m o r e s t e e p l y than m i l k u s e d f o r
d rin k in g .
In the e x p e c t a t io n o f b e t t e r
r e t u r n s , an i n c r e a s i n g p r o p o r t i o n o f
m i l k w a s d i v e r t e d to the m a n u f a c t u r e
o f these produ cts.
T h e h ig h e r p r i c e s ,
h ow ever, d isco u ra g e d co n su m e r d e ­
m and at the s a m e t im e that l a r g e r
s u p p lie s w e r e b e in g g e n e r a te d . In
c o n s e q u e n c e , p r i c e s o f m a n u fa c t u r e d
d a i r y p r o d u c t s b e g a n to d e c l i n e and
c on tin u ed d ow n t h r o u g h m o s t o f 1967;
w h o l e s a l e p r i c e o f b u tter a v e r a g e d
the s a m e as in 1966 and c h e e s e l o w e r
than in 1966. N o n e t h e le s s , the l a r g ­
e s t i n c r e a s e s in both w h o l e s a l e and
r e t a i l d a i r y p r o d u c t p r i c e s s i n c e 1964
h a v e b e e n in t h e s e tw o p r o d u c t s —
c h e e s e 20 p e r c e n t and bu tter 13 p e r ­
cent.
Wheat, F lo u r , and B r e a d . F o r the
f i r s t t im e s i n c e the buildup in g r a in
s u r p l u s e s b e g a n a d o z e n y e a r s a g o,
a tight s u p p ly s itu a tio n f o r w h eat
d e v e lo p e d in 1966. G o v e r n m e n t
h o ld in g s d r o p p e d to the l o w e s t l e v e l
in 1 3 y e a r s w h ile e x p o r t d em a n d ,
both c o m m e r c i a l and aid s h ip m e n ts ,
s k y r o c k e t e d . Bad w e a t h e r , w h ic h
d a m a g e d the M id w e s t c r o p , c a u s e d
p r o s p e c t s f o r 1966 w h ea t p r o d u c t io n
to a p p e a r p o o r at the s a m e t im e that
p r e s s u r e s f o r f o r e i g n aid in t e n s ifie d .
A s a r e s u lt , s p e c u la t iv e buying d r o v e
w h e a t p r i c e s u p w ard b y 20 p e r c e n t
b e t w e e n A p r i l and S e p t e m b e r . H o w ­
e v e r , i m p r o v e d c r o p p r o s p e c t s la t e r
in the y e a r f o r both the United States
and o t h e r m a j o r w h eat p r o d u c in g
c o u n t r i e s c a u s e d p r i c e s to s lid e
d o w n w a rd . N o n e t h e le s s , w h o l e s a l e
p r i c e s f o r w h eat ended the y e a r 13
p e r c e n t h ig h e r than a y e a r e a r l i e r .
A lth ou g h the 1966 c r o p eq u a led the
2 0




a b o v e - a v e r a g e d 1965 w h eat p r o d u c ­
tion, the totail U. S. w h eat s u p p ly w a s
the s m a l l e s t s i n c e 1952 b e c a u s e o f
the v e r y low l e v e l o f G o v e r n m e n t
stock s.
When it b e c a m e ev id en t that
a d d itio n a l s u p p lie s w e r e n e e d e d to
m e e t d o m e s t i c and f o r e i g n d em a n d ,
a c r e a g e a llo t m e n t s f o r the 1967 w h ea t
c r o p w e r e i n c r e a s e d by o n e - t h i r d .
H ig h e r w h ea t p r i c e s w e r e t r a n s ­
f o r m e d q u ic k ly into h ig h e r p r i c e s f o r
f lo u r and b r e a d . W h o le s a le b r e a d
p r i c e s a d v a n c e d abou t 9 p e r c e n t in
1966 a f t e r 4 y e a r s o f r e l a t i v e s t a ­
b ility . A t r e t a il, the l o n g - t e r m u p ­
trend in b r e a d p r i c e s , m o d e r a t e
s i n c e I9 6 0 , a c c e l e r a t e d to 8 1 / 2
p e r c e n t , the l a r g e s t annual r i s e s i n c e
the 9 1 / 2 p e r c e n t ju m p d u r in g the
K o r e a n - w a r y e a r o f 1951. A lth ou g h
h ig h e r w h eat and f l o u r p r i c e s s p u r r e d
the i n c r e a s e in b r e a d p r i c e s , r i s i n g
p r i c e s f o r o th e r in g r e d ie n t s su c h as
m ilk , e g g s , and s u g a r p la y e d a p art.
A d d it io n a l im p o r t a n t f a c t o r s w e r e
h ig h e r c o s t s f o r l a b o r , t r a n s p o r t a t io n ,
and m a r k e t in g as w e l l as a tte m p ts to
p r e s e r v e o r t;o i m p r o v e p r o f i t
m a rgin s.
R e c o rd -b re a k in g c ro p s caused
g r a in p r i c e s , in c lu d in g c o r n and
w h e a t , to d r o p in late 1966
and the s te e p s lid e con tin u ed t h r o u g h ­
out m o s t o f 1967. B r e a d p r i c e s a l s o
e a s e d s o m e w h a t both at w h o l e s a l e
and r e t a il, but the d r o p w a s to o s lig h t
to b r in g them b e lo w t h e ir 1966 l e v e l s .
In 1967, p r i c e s o f b r e a d w e r e 11 p e r ­
c e n t h ig h e r at w h o l e s a l e and 9 p e r c e n t
h ig h e r at r e t a i l than in 1964.
F r u it s and V e g e t a b le s . In r e c e n t
y e a r s , the r i s e in r e t a i l p r i c e s o f
f r u it s and v e g e t a b l e s —both at the
f r e s h and p r o c e s s e d l e v e l s —has e x ­
c e e d e d to a m a r k e d extent the w h o l e ­
s a le i n c r e a s e s . F r e s h p r o d u c e p r i c e s
in 1966 w e r e 24 p e r c e n t a b o v e th e ir
1 9 5 7 -5 9 a v e r a g e at r e t a i l but o n ly
2 1 / 2 p e r c e n t h ig h e r at w h o l e s a l e .
P r o c e s s e d fr u it and v e g e t a b le p r i c e s
w e r e 10 p e r c e n t h ig h e r than th e ir

1 9 5 7 -5 9 a v e r a g e at r e t a il, c o m p a r e d
w ith 5 p e r c e n t at w h o l e s a l e .
F re sh p rod u ce p r ic e s clim b ed
s h a r p ly in 1964. D u rin g the n ext 2
y e a r s , r e t a i l p r i c e s con tin u ed m o d e r ­
a t e ly u p w ard , but w h o l e s a l e p r i c e s
flu c tu a te d s lig h t ly b e lo w t h e ir high
1964 le v e l .
U n fa v o r a b le w e a t h e r in
the s p r in g o f 1965 and th rou gh m u c h o±
1966 d is t u r b e d p lanting and h a r v e s t in g
s c h e d u le s and kept p r o d u c e p r i c e s
high d u rin g both y e a r s .
In a d d ition ,
g r o w in g c o n s u m e r d em a n d f o r f r e s h
f r u it s and v e g e t a b l e s as w e l l as r i s i n g
c o s t s f o r e q u ip m en t, f e r t i l i z e r s , and
l a b o r h e lp e d push p r i c e s u p w ard.
In 1967, u n f a v o r a b le w e a t h e r and
d e la y e d m a t u r in g o f la te s p r in g c r o p s
d is r u p t e d h a r v e s t in g s c h e d u le s and
c a u s e d f r e s h p r o d u c e p r i c e s to r i s e
in the s e c o n d q u a r t e r o f the y e a r . Al­
though the i n c r e a s e w a s ju s t a lit t le
m o r e than s e a s o n a l at the r e t a i l le v e l ,
the w h o l e s a l e r i s e w a s s teep . In the
th ird q u a r t e r , h o w e v e r , the d e la y e d
h a r v e s t s o f v e g e t a b l e s f l o o d e d the
m a r k e t and c a u s e d p r i c e s to d r o p
s o m e w h a t m o r e than they had r i s e n
the p r e v i o u s q u a r t e r .
W h o le s a le
p r i c e s d u r in g the y e a r a v e r a g e d c l o s e
to the l e v e l s p r e v a i l i n g s i n c e 1964
w h ile r e t a i l p r i c e s con tin u ed t h e ir
m o d e r a t e u p tren d .
Im p o r ta n t p r o d u c t i o n c h a n g e s r e ­
su lted f r o m the t e r m in a t io n at the end
o f 1964 o f P u b lic Law 78 w h ic h had
a u t h o r iz e d the a d m i s s i o n o f M e x ic a n
c o n t r a c t w o r k e r s to p e r f o r m s e a s o n a l
a g r i c u l t u r a l w o r k . In 1964, the h a r ­
v e s t in g o f m a n y c r o p s su ch as le t t u c e ,
c a n t a lo u p e s , t o m a t o e s , c u c u m b e r s ,
c it r u s f r u it s , and s t r a w b e r r i e s w a s

a l m o s t e n t ir e ly d ep en d en t upon f o r e i g n
w orkers.
B y 1966, m a n y o f t h e s e
c r o p s w e r e h a r v e s t e d w ith the aid o f
o n ly a s m a l l n u m b e r of f o r e i g n w o r k ­
e r s — 2 5 ,0 0 0 in 11 States, c o m p a r e d
w ith 200, 000 in 29 States 2 y e a r s
e a r l i e r . A b ou t 82 p e r c e n t o f the w o r k
in v o lv e d in c u lt iv a t in g and h a r v e s t ­
ing l e m o n s and 38 p e r c e n t o f w o r k on
o r a n g e s had b e e n p e r f o r m e d b y f o r ­
e i g n e r s in 1964. F r o m A p r i l 1965
th rou g h e a r l y 1967, no f o r e i g n l a ­
b o r e r s w e r e u s e d , but in the s p r in g o f
1967 F l o r i d a c i t r u s g r o w e r s w e r e
p e r m i t t e d to h i r e f o r e i g n w o r k e r s to
a v o id c r o p l o s s e s . .§/
In ten sified r e c r u i t m e n t o f U. S.
w o r k e r s and h ig h e r w a g e s h a v e h e lp e d
f i l l the gap le f t b y f o r e i g n a g r i c u l t u r a l
w orkers.
F arm w ages r o s e 5 p ercen t
in 1965 and 8 p e r c e n t in 1966, c o m ­
p a r e d w ith an a v e r a g e annual i n c r e a s e
o f 2 1 / 2 p e r c e n t b e t w e e n I9 60 and
1 9 6 4 .1 /
In ad d ition , the end o f the Mb r a c e r o " p r o g r a m h as h a s t e n e d m e c h a n i ­
zation. In fa c t, i n c r e a s e d m e c h a n i ­
z a tion and o th e r t e c h n o l o g i c a l c h a n g e s
have caused a g ricu ltu ra l p rod u ctiv ity
to r i s e r a p id ly , p a r t i c u l a r l y f o r p o t a ­
t o e s and v e g e t a b l e s u s e d f o r c a n n in g
or freezin g .
F o r e x a m p le , although
on ly o n e - f o u r t h o f the t o m a t o c r o p
p r o d u c e d f o r the p r o c e s s i n g m a r k e t
in 1965 w as h a r v e s t e d b y m a c h i n e s ,
about 70 o r 80 p e r c e n t w a s h a r v e s t e d
by m a c h in e in 1966.
M an-hours p er
ton o f t o m a t o e s w e r e cut f r o m 7. 2 to
1. 5, and o v e r a l l c o s t w a s r e d u c e d
abou t 40 p e r c e n t . -1-27 S c ie n t is t s and
e n g in e e r s a r e c o n tin u in g e f f o r t s to
d e v e lo p m a c h i n e r y and t e c h n iq u e s f o r

8/ F a r m L a b o r D e v e lo p m e n t s . J a n u a ry 1965, July 1966, J a n u a r y 1967,
and A u g u s t - S e p t e m b e r 19o7 i s s u e s .
M a n p o w e r A d m in is t r a t io n , B u r e a u o f
E m p lo y m e n t S e c u r it y , U„ S. D e p a r t m e n t o f L a b o r , W a sh in g ton , D. C.
9/ E c o n o m i c R e p o r t o f the P r e s i d e n t , J a n u a r y 1967. C o u n c il o f E c o n o m i c
A d v isers.
T a b le B - 2 7 , p. 245.
JLQ/ W e e k ly D ig e s t, F e b r u a r y 4, 1967. A m e r i c a n Institute o f F o o d
D is t r ib u t io n . New Y o r k , N. Y.




21

c u ltiv a tin g and h a r v e s t in g oth e r c r o p s ,
in c lu d in g ir u it s and v e g e t a b l e s d e s ­
tined f o r the f r e s h m a r k e t .
F r o m t im e to t im e , r e p o r t s h a v e
appeared of la b or sh ortage or of
d i f f i c u l t i e s e n c o u n t e r e d in h a r v e s t in g
f r u i t s and v e g e t a b l e s . G e n e r a l l y
t h e s e p r o b l e m s s t e m m e d f r o m the
d i s t o r t i o n s in plan tin g and g r o w in g
sea son s ca u sed by a d v e rse w eather
c o n d it io n s w h ic h c h a n g ed h a r v e s t in g
s c h e d u le s s u f f i c i e n t l y to c a u s e u n ­
f o r e s e e n o v e r l a p p i n g . In e m e r g e n c y
s itu a tio n s -w h e re la b or w as needed
to a v e r t s e r i o u s c r o p l o s s e s , and
U. S. w o r k e r s w e r e not a v a i l a b l e —the
U. S. D e p a r t m e n t o f L a b o r has p e r ­
m it te d the u s e o f f o r e i g n l a b o r .

Food Away from Home

F o r m e a l s and snacKs a w a y f r o m
h o m e , the 4 1 / 2 —p e r c e n t p r i c e a d ­
v a n c e in 1966 w a s m o r e than d o u b le
that o f o th e r r e c e n t y e a r s , and the
l a r g e s t s i n c e 1953 (the y e a r t h e s e
fig u re s w e re fir s t com p iled ). H ow ­
e v e r , p r i c e s r o s e a m o r e s u b s ta n tia l
5 p e r c e n t in 1967 e v en though the c o s t
o f f o o d did not i n c r e a s e .
In 1965 and 1966, a m a j o r c a u s e
o f h ig h e r r e s t a u r a n t m e a l p r i c e s w a s

11/ W a sh in g ton R e p o r t , J a n u a r y 23,
A s s o c iation. W a shington, D. C.

2 2




r i s i n g fo o d c o s t s . A b ou t 44 p e r c e n t
o f r e s t a u r a n t r e v e n u e is spen t on
fo o d , and m e a t s a c c o u n t f o r abou t 38
p e r c e n t o f f o o d c o s t s . )U
O th er
c o s t s a l s o m o v e d up s u b s ta n tia lly ,
s u ch as w a g e s , eq u ip m en t, t a x e s ,
and rent. S h o r t a g e s o f s k ille d l a b o r
p lu s the c o v e r a g e o f r e s t a u r a n t
w o r k e r s f o r the f i r s t t im e by the
m in im u m w a g e and o v e r t i m e p r o v i ­
s io n s o f the F a i r L a b o r Stand ard s
A c t , e f f e c t i v e F e b r u a r y 1967, c o n ­
tinued to push up l a b o r c o s t s w h ic h
a c c o u n t f o r abou t 30 p e r c e n t o f a ll
restaurant expenses.
T h e im p a c t
o f r i s i n g c o s t s f o r it e m s o t h e r than
f o o d plus the a tte m p t to w id e n r e t a i l
p rofit m a rg in s w as la r g e ly r e s p o n s i­
b le f o r the co n tin u in g r a p id r i s e in
r e s t a u r a n t p r i c e s in 1967.
In ad d ition , h ig h e r r e s t a u r a n t
p r i c e s r e f l e c t e d g r o w in g p a t r o n a g e .
C o n s u m e r s p e n d in g f o r r e s t a u r a n t
m e a l s is c l o s e l y r e la t e d to g e n e r a l
e c o n o m i c p r o s p e r i t y and, b e g in n in g
in 1964, r o s e s u b s ta n t ia lly m o r e in
r e a l t e r m s than at any t im e s i n c e the
K orean e m e rg e n cy .
In f a c t , the 1964
and 1966 i n c r e a s e s o f 5. 7 p e r c e n t
e a c h in s p en d in g on p u r c h a s e d f o o d
and b e v e r a g e s (in c o n s ta n t d o l l a r s )
e x c e e d e d the 1951 K o r e a n p e a k a d ­
v a n c e o f 5. 3 p e r c e n t.

1967.

N ation al R e s t a u r a n t

CHAPTER III
Charges For Consumer Services
A f t e r i n c r e a s i n g about 2 p e r c e n t
a n n u ally e a r l y in this d e c a d e , c h a r g e s
fo r co n s u m e r s e r v ic e s have been
r i s i n g f a s t e r e a c h y e a r s i n c e 1964,
and w e r e a l m o s t 11 p e r c e n t h ig h e r
in 1967 than th ey w e r e 3 y e a r s
ea rlie r.
(See ta b le 4. ) D u rin g the
s a m e p e r i o d , r e t a i l fo o d p r i c e s
r o s e 8 p e r c e n t and r e t a i l p r i c e s f o r
n o n fo o d c o m m o d i t i e s i n c r e a s e d 4-1/2
p ercen t.
T h e u p w a rd tr e n d in s e r v i c e
p r i c e s is a l o n g - t e r m p h e n o m e n o n .
S e r v i c e c h a r g e s hav e m o v e d up a n ­
n u a lly s i n c e 1935, the f i r s t y e a r f o r
w h ic h t h e s e f i g u r e s a r e a v a ila b le .
D u rin g the 1950*s, the i n c r e a s e a v ­
e r a g e d 3 - 1 / 2 p e r c e n t a n n u ally as
c o n s u m e r d e m a n d sh ifted to s e r v ­
i c e s w hen the n e e d s f o r c o m m o d i ­

t ie s w e r e m e t a f t e r W o r ld W ar II. In
the 1 9 6 0 *s , h o w e v e r , the p r o p o r t i o n
o f a ll c o n s u m e r sp en d in g a l l o c a t e d to
s e r v i c e s has h e ld s tea d y , although
the am ou n t spent (in c o n s ta n t d o l l a r s )
has r i s e n s u b s ta n tia lly .
In 1966, p r i c e i n c r e a s e s w e r e s u b ­
sta n tial and w i d e s p r e a d , a c c e l e r a t i n g
as the y e a r a d v a n c e d . A lth o u g h c o n ­
su m er s e r v ic e ch a rg es in cre a s e d r a p ­
id ly in 1967, the r a t e w a s m o r e m o d ­
e r a t e than du rin g the l a s t h a lf o f 1966.
(See t a b le 5. ) N o n e t h e l e s s , c o n s u m e r
s e r v ic e s averaged 4 -1 /2 p ercen t
h ig h e r in 1967 than a y e a r e a r l i e r ,
the l a r g e s t r a t e o f r i s e s i n c e 1953.
M a j o r 1 9 6 5 -6 7 D e v e lo p m e n t s
T h e s e r v i c e c o m p o n e n t o f the C o n ­
s u m e r P r i c e Index is a h e t e r o g e n e o u s

Chart 6. Year-to-Year Changes in Consumer Service Prices
(Percent Changes in Annual Averages)

Percent

10 1—
A ll Services

Household Services

KO
62 63 64 65 66
63 64 65 66 67




62 63 64 65 66
63 64 65 66 67

62 63 64 65 66
63 64 65 66 67

Transportation Services

r

62 63 64 65 66
63 64 65 66 67

Medical Care Services

O ther Services

62 63 64 65 66
63 64 65 66 67

62 63 64 65 66
63 64 65 66 67

23

T a b le 4. S e le c t e d C o n s u m e r S e r v i c e P r ic e s ,,

1 9 6 4 —67

[1957*59=100]
P ercent
change

Annual a v e r a g e s
C o n s u m e r p r i c e in d e x e s
1964

1965

1966

1967

196 4 -6 7

A l l s e r v i c e s ....................... ... # .

115. 2

117. 8

122. 3

127. 7

10. 9

R e n t ...........................................................

107. 8

108. 9

110. 4

112. 4

4. 3

T r a n s p o r t a t io n s e r v i c e s .............
A u to r e p a i r s .................................
A u to i n s u r a n c e ..........................
R e g i s t r a t i o n and l i c e n s e f e e s
P a r k in g and g a r a g e re n t . . .
L o c a l t r a n s i t .................................
R a i l r o a d f a r e , c o a c h ................
A i r l i n e f a r e s .................................
Bus f a r e s , i n t e r c i t y
.............

115.
110.
119.
105.
100.
122.
104.
100.
101.

119.
112.
130.
105.
102.
125.
105.
100.
103.

1 24.
114.
139.
115.
103.
130.
104.
100.
106.

128.
119.
143.
119.
106.
140.
105.
100.
110.

M e d ic a l c a r e s e r v i c e s ................
P h y s i c i a n s 1 f e e s ..........................
D e n t i s t s 1 f e e s .............................
E y e e x a m in a t io n &
g l a s s e s ..........................................
H o s p it a l d a ily r a t e s ................
O p e r a t in g r o o m c h a r g e s . . .

123. 2
117. 3
114. 0

127. 1
121. 5
117. 6

133. 9
128. 5
121. 4

145. 6
137. 6
127. 5

18. 2
17. 3
11. 8

110. 7
144. 9
101. 9

113. 0
153. 3
106. 4

116. 1
168. 0
113. 7

121. 8
200. 1
128. 4

10. 0
38. 1
26. 0

H o u s e h o ld s e r v i c e s ..........................
M ortgage in te re st rates. . . .
P r o p e r t y t a x e s .............................
P r o p e r t y i n s u r a n c e ....................
H o m e m a in t e n a n c e & r e p a i r s
G a s .......................... ..........................
E l e c t r i c i t y . ....................................
T e l e p h o n e .......................................
D o m e s t i c s e r v i c e .......................
B a b y s i t t e r s .................................
Day c a r e ..........................................
L a u n d ry , f l a t w o r k ....................
P o s t a l c h a r g e s .............................

114.
100.
101.
114.
101.
112.
102.
104.
123.
100.
101.
101.
135.

8
1
4
4
5
8
5
5
5
1
0
4
8

117.
100.
105.
122.
104.
113.
102.
103.
129.
103.
103.
105.
136.

0
5
5
2
3
1
0
0
8
9
6
5
4

121. 5
106 . 9
108.9
128. 8
109. 9
1 1 3 .8
102. 0
100. 9
136. 6
108. 6
109. 8
112. 5
137. 6

127.
112.
115.
135.
116.
113.
102.
102.
147.
115.
116.
121.
141.

0
0
3
4
7
6
9
2
8
6
7
7
5

10.
11.
13.
18.
15.
0.
0.
-2 .
19.
15.
15.
20.
4.

6
9
7
4
0
7
4
2
7
5
5
0
2

O th er s e r v i c e s ....................................
L a u n d ry , m e n ’ s s h ir ts . . . .
D r y c l e a n i n g .................................
T a i l o r i n g c h a r g e s .......................
Shoe r e p a i r s .................................
M e n 's h a i r c u t s .............................
B ea u ty s h o p ....................................

118.
100.
109.
100.
116.
117.
113.

5
6
0
0
4
7
0

121.
103.
111.
100.
117.
122.
115.

8
0
2
9
1
1
7

126.
107.
115.
104.
117.
129.
119.

131.
113.
120.
110.
118.
136.
124.

5
0
7
4
1
1
3

11.
12.
10.
10.
1.
15.
10.

0
3
7
4
5
6
0

24



0
6
2
5
5
8
7
0
2

3
6
5
8
2
4
0
5
6

3
7
9
7
3
9
9
6
3

5
4
6
8
8
5
6

4
2
8
5
9
2
5
8
6

11.
7.
20.
13.
6.
14.
0.
0.
9.

7
8
6
3
4
2
8
8
3

T a b le 4. S e le c t e d C o n s u m e r S e r v i c e P r i c e s ,
[1 9 5 7 -5 9 = 1 0 0 ]

19 6 4 —67 — C on tin ued

Percent
change

A n nual a v e r a g e s
C o n s u m e r p r i c e in d e x e s
1964
O th e r s e r v i c e s — C on tin u ed
M o v ie a d m i s s i o n s .......................
B o w lin g f e e s .................................
F i l m d e v e l o p i n g ..........................
F u n e r a l s e r v i c e s .......................
Bank s e r v i c e c h a r g e s .............
L e g a l s e r v i c e s ..............................




135.
99.
101.
100.
100.
104.

5
1
2
2
7
6

1965

146. 4
99. 3
103. 1
101. 4
100. 8
1 1 0 .4

1966

157.
100.
104.
103.
101.
113.

3
7
4
4
5
9

1967

169.
103.
106.
106 .
104.
119.

2
9
4
1
0
5

196 4 -6 7

24.
4.
5.
5.
3.
14.

9
8
1
9
3
2

25

T a b le 5# S e le c t e d C o n s u m e r S e r v i c e P r i c e s
Q u a r t e r l y P e r c e n t C h a n ges
[N ot s e a s o n a l l y a d ju s te d ]
1966
C onsum er
P r i c e In­
dexes

D ec. 1965 M a r c h
to
to
M arch
June

1967
June
to
Sept.

Sept. D e c. 1966 M a r c h June Sept.
to
to
to
to
to
M arch
June Sept. D e c .
D e c.

A l l s e r v i c e s • ••

0. 7

1. 6

1. 2

1. 4

0. 9

0. 9

1. o

1. 1

R e n t ....................

0 .4

0. 3

0. 5

0. 5

0. 4

0. 4

0. 5

0. 6

1. 1
0
1. 3

0. 5
0. 5
0. 9

1. 9
0. 9
1. 6

0. 8
1. 0
0. 6

0. 7
1. 5
0‘ 5

0. 5
0. 8
0. 2

0. 6
1. 0
0. 8

1. 2
0. 9
0. 4

10. 1

0. 2

0

0

2. ]

0. 7

0

0

0. 3
0. 1
—

-0. 2
0
—

0. 1
8. 9
—

0. 9
0. 1
---

2. 0
0. 7
___

0. 1
0. 7
---

1. 4
0. 9
—

1. 1
2. 1
---

-0 . 1
0. 1

0
-0. 2

0
0

0
-0 . 1

0. 2
0. 1

0
0. 3

0. 3
0

1. 5
0. 2

1. 3

0. 3

0. 4

0. 2

2. 6

1. 5

0. 2

-0 . 3

1. 5

1. 7

2. 4

2. 3

2. 5

1. 6

1. 9

1. 6

1. 8
0. 6

2. 0
1. 2

2. 2
1. 6

1. 6
1. 2

2. 0
1. 2

1. 3
0. 9

1. 5
1. 5

1. 1
1. 5

0. 4

1. 0

1. 2

1. 3

1. 7

0. 9

0. 9

0. 7

2. 4

2. 1

5. 1

6. 0

6. 1

3. 0

2. 0

3. 6

2. 1

1. 3

2. 5

3. 1

4. 5

3. 5

2. 5

1. 4

0. 1

2. 7

1. 1

1. 5

0. 6

0. 9

1. 1

0. 8

0. 7
0. 7

6. 0
1. 1

2. 1
1. 2

3. 1
0. 5

-0. 5
2. 4

-1. 2
2. 0

0 .4
1. 2

0. 5
0. 8

T ra n sp orta tion
s e r v i c e s ..........
A u to r e p a i r s •
A u to i n s u r a n c e
R eg istra tion
and l i c e n s e
f e e s ...............
P a r k in g and
garage r e n t •
L o c a l t r a n s it •
T a x i c a b s ••••
R a ilroa d fa re,
c o a c h ..........
A irlin e fa res •
Bus f a r e s ,
i n t e r c i t y •••
M e d ic a l c a r e
se rv ice s . . . .
P h y sicia n s1
f e e s ...............
D e n t i s t s 1f e e s
Eye ex a m in a ­
tion and e y e ­
g la sse s . . . .
H o s p ita l d a ily
rates
..........
O p e r a t in g
room charges
H o u s e h o ld s e r v i c e s . ...............
M ortg age
in terest rates
P r o p e r ty taxes

26



T a b le 5. S e le c t e d C o n s u m e r S e r v i c e P r i c e s — C on tin u ed
Q u a r t e r l y P e r c e n t C h an ges
[Not s e a s o n a l l y a d ju s te d ]
1966
Consum er
P r i c e In­
dexes

D e c. 1965 M a r c h
to
to
M arch
June

1967
June
to
Sept.

Sept. D e c. 1966 M a r c h June Sept.
to
to
to
to
to
Sept. D e c.
M arch
D e c.
June

H o u s e h o ld s e r v ­
i c e s —Cont*d
P r o p e r t y in ­
s u r a n c e ••••
H om e m a in ­
t e n a n c e and
re p a irs . . .
E lectricity . . .
T e le p h o n e . . .
D om estic
se rv ice . . . .
B a b y s i t t e r s ••
Day c a r e . . . .
L a u n d ry, f l a t w o r k .............
P ostage
charges . . . .

2.
-0.
0.
6.

0
4
1
6

1. 6

1.
0.
-0.
0.

0. 4

9
2
2
1

1. 5
-0. 5
0. 2
0

0. 7

1.
0.
0.
-0.

3. 1

1
4
4
2

1. 5
-0. 3
0. 1
0

0. 7

1.
0.
1.
0.

0. 4

1.
8
2 -0.
1 -0.
1 -1 .

2
1
3
1

1. 7
1. 2
0 .4

0. 7
1. 2
2. 8

1. 9
0. 2
1. 2

2. 2
1. 9
2. 3

2. 8
2. 2
1. 0

1. 5
1. 6
1. 4

1. 0
1. 7
1. 1

3. 4
1. 6
1. 4

1. 6

1. 8

2. 3

3. 2

1. 9

1. 8

0. 1

1. 6

0

1. 3

0

0

2. 6

0

0

0

1. 5

1. 1

0. 9

1. 1

0. 6

1. 2

0. 8

1. 4

1. 1
1. 0

0. 8
1. 4

0. 8
1. 5

3. 4
2. 1

0. 6
0. 3

0. 8
1. 2

0. 5
0

0. 6
0. 8

1.
0.
1.
0.

2.
0.
2.
1.

1.
0.
1.
1.

9
8
4
7

0. 4
0
0. 9
1. 1

1.
0.
0.
1.

2.
0.
1.
0.

2. 9
-0. 4

0
3
9
7

9
3
7
5

0
2
5
o

0.
-0 .
1.
0.

1. 2
-0. 7

1. 5
-2 . 1

1. 4
4. 0

1. 1
1. 7

0. 9

-0. 1

-0 . 4

0. 6

0. 1

0. 3

0. 7

0. 9

0. 6

0. 5

0. 3
1. 4

0. 2
0. 2

0. 7
1. 2

0. 6
1. o

-0. 2
1. 6

9
9
6
o

0
3
6
8

1.
-0 .
1.
1.

4
1
0
4

2. 8
-1 . 3

3. 1
3. 2

•

3. 7
1. 3

1. 7

6. 5

0 .6

0. 7

1. 6

1. 5
1. 6

0. 7
0. 4

2. 0
2. 1

1




1. 2
0. 4
0
-6. 3

1. 7

o

O th e r s e r v i c e s .
L a u n d ry,
m e n 's s h ir ts
D r y c le a n in g .
T a ilorin g
charges . . . .
Shoe r e p a i r s . .
M e n 's h a ir c u t s
B ea u ty sh op • •
M o v ie a d ­
m i s s i o n s •••
B o w lin g f e e s . .
F ilm d e ­
v e lo p in g . . . .
Funeral
s e r v i c e s • ••
Bank s e r v i c e
charges . . . .
Legal s e rv ic e s

1. o

27

g r o u p c o m p o s e d o f d i v e r s e c o s t s su c h
as r e n t , u tility r a t e s , p r o p e r t y t a x e s ,
m o v i e a d m i s s i o n s , and p a y m e n t s to
h a i r d r e s s e r s , auto r e p a i r m e n , and
b a b y s i t t e r s . A b o u t h a lf o f the s e r v ­
i c e s in the in d e x m a y b e r e g a r d e d as
" s e r v i c e in d u stries , n w h ere c o m p e n ­
sa tio n f o r p e r s o n a l e f f o r t r e p r e s e n t s
a high p r o p o r t i o n o f total c o s t s .
Charges for con su m er s e r v ic e s
that in v o lv e c o m p e n s a t i o n f o r p e r ­
s o n a l e f f o r t c l i m b e d s t e e p l y in 1966,
and co n tin u e d r i s i n g r a p id ly in 1967.
A t the s a m e t im e , a s ig n if ic a n t s h a r e
o f the 1 9 6 5 -6 7 p r i c e r i s e w a s due to
t h o s e s e r v i c e s w h e r e l a b o r d o e s not
f o r m a l a r g e p r o p o r t i o n o f total c o s t s ,
m o r t g a g e i n t e r e s t , p r o p e r t y and auto
in s u r a n c e , r e a l e s ta te t a x e s , and
ren t. A m o n g the p u b l i c l y - r e g u l a t e d
s e r v i c e s , r a t e s f o r the u t ilit ie s —g a s,
e l e c t r i c i t y , and t e l e p h o n e —r e m a i n e d
s t e a d y until 1967, w hen e l e c t r i c i t y
r a t e s r o s e s h a r p ly a ft e r m i d y e a r .
In c o n t r a s t , l o c a l t r a n s it f a r e s h a v e
in cre a s e d each yea r.
S in ce p r o d u c t i v i t y g a in s in m a n y
o f the s e r v i c e s a r e l i m i t e d , r i s i n g
c o s t s tend to b e r e f l e c t e d q u ic k ly in
h ig h e r p r i c e s .
B e g in n in g in 1965,
c o s t s i n c r e a s e d m a r k e d l y —l a b o r , m a ­
t e r i a l s , e q u ip m en t, o v e r h e a d , c o n ­
s t r u c t io n , and c o s t o f c r e d i t . S o m e
o f the la te 1966 and 1 9 6 7 - p r i c e r i s e s
w e r e a ttrib u te d b y e m p l o y e r s to
h ig h e r l a b o r c o s t s r e s u lt in g f r o m the
1966 a m e n d m e n t s ( e f f e c t i v e F e b r u a r y
1, 1967) to the F a i r L a b o r S tan d ard s
A c t w h ich , f o r the f i r s t t i m e , e x ­
te n d e d F e d e r a l m in im u m w a g e and
o v e r t i m e p r o v i s i o n s to s o m e s e r v i c e
i n d u s t r ie s .
M a n p o w e r s h o r t a g e s in c e r t a i n
o c c u p a t i o n s h e lp e d b r in g abou t s o m e
o f the i n c r e a s e in c o n s u m e r s e r v i c e
p rice s.
L o n g - s t a n d in g s h o r t g a g e s
o f c e r t a i n p r o f e s s i o n a l and h i g h l y t r a in e d w o r k e r s su c h as d o c t o r s ,
m e d i c a l l e c n m c i a n s , and auto m e ­
c h a n i c s g r e w m o r e a c u t e and m a d e it
e a s y to i n c r e a s e c h a r g e s . A m o n g the

28



l e s s - s k i l l e d and l o w - p a i d s e r v i c e
w o r k e r s , expanding e c o n o m y o f f e r e d
b e t t e r e m p lo y m e n t o p p o r t u n it ie s in
o t h e r f i e l d s and c a u s e d e m p l o y e r s to
r a i s e w a g e s in o r d e r to a t t r a c t and
h old t h e ir w o r k f o r c e .
A unique f a c t o r in the 1966 a d v a n c e
in s e r v i c e p r i c e s w a s the im p a c t o f the
tig h ten ed m o n e y supply.
The m on eta ry
m e a s u r e s , w h ic h w e r e d e s ig n e d to
c o u n t e r in f la t io n a r y p r e s s u r e s , a l s o
i n c r e a s e d the c o s t o f c r e d i t . A s d e ­
v e lo p m e n t s in the m o n e y m a r k e t in
la t e 1965 and e a r l y 1966 le d to a s h o r t ­
a g e o f m o r t g a g e fu n d s, m o r t g a g e
i n t e r e s t s r a t e s c l i m b e d s t e e p l y and
a c c o u n t e d f o r a s u b s ta n tia l s h a r e o f
the 1966 r i s e in the c o n s u m e r s e r v i c e s
ind ex.
T h e e a r l y 1967 e a s in g o f the
m o n e y s u p p ly c a u s e d m o r t g a g e i n t e r ­
e s t r a t e s to d e c r e a s e s lig h t ly f r o m the
high l e v e l s o f la t e 1966 but, as d em a n d
f o r a v a ila b le funds o n c e m o r e in ­
c r e a s e d , m ortg aige i n t e r e s t r a t e s b e ­
gan to r i s e a f t e r m i d - 1 9 6 7 .
The in t r o d u c t io n o f the M e d i c a r e
p r o g r a m in July o f 1966 u n d ou b ted ly
p la y e d an im p o r t a n t p a r t in the. r a p id
i n c r e a s e in c h a r g e s f o r m e d i c a l c a r e
s e r v i c e s . D u rin g the 1 2 - m o n t h p e r i o d
ending in June o f 1967, m e d i c a l c a r e
c h a r g e s r o s e 9 p e r c e n t —about t w ic e as
m u c h as the a v e r a g e f o r a ll c o n s u m e r
s e r v i c e s . D a ily h o s p it a l r a t e s shot up
22 p e r c e n t d u r in g this p e r i o d , p h y s i ­
c ia n s 1 fees in c r e a s e d 7 -1 /4 p erce n t,
and dentists* c h a r g e s r o s e 5 p e r c e n t .
A lth o u g h h o s p it a l r a t e s in 1967 w e r e
s t ill i n c r e a s i n g f a s t e r than m o s t o t h e r
m e d i c a l c a r e c h e ir g e s , the p a c e o f a d ­
v a n c e a f t e r e a r l y 1967 w a s s u b s ta n t ia lly
s l o w e r than d u rin g the p r e v i o u s 9
m o n t h s . A p p a r e n t ly , the 1966 e a r l y
1967 p r i c e u p s u r g e e n g e n d e r e d b y u n e x ­
p e c t e d l y l a r g e w a g e i n c r e a s e s , in it ia l
c o v e r a g e u n d er the m in im u m w a g e and
o v e r t i m e p r o v i s i o n s o f the F a i r L a b o r
Stand ard s A c t , and the in t r o d u c t io n o f
M e d i c a r e has p a s s e d its p eak . ( See
ta b le 5 . )

Service Industries:

Labor-Intensive

Services

A b o u t h a lf o f the s e r v i c e s r e p r e ­
s e n te d in the C o n s u m e r P r i c e Index
fa ll w ith in the Standard In d u s tr ia l
C la ssifica tion c a te g o ry o f s e r v ic e
in d u s t r ie s .
With s o m e e x c e p t i o n s ,
l a b o r c o s t s c o n s tit u t e a high p r o p o r ­
tio n o f the fin a l p r i c e o f t h e s e s e r v ­
ic e s . A n oth er c o m m o n c h a r a c t e r ­
i s t i c is the l i m i t e d am ou n t o f p r o ­
d u c t iv it y g a in s and the c o n s e q u e n t
r a p id r e f l e c t i o n o f h ig h e r c o s t s in
the p r i c e s t r u c t u r e .
In 1966, o v e r h a lf o f the r i s e in
consum er s e rv ice charges cam e
f r o m " l a b o r - i n t e n s i v e 11 s e r v i c e s ;
m e d i c a l c a r e a c c o u n t e d f o r abou t
o n e - f o u r t h o f the r i s e in the s e r v i c e
p r i c e l e v e l . A n o t h e r 15 p e r c e n t
r e s u l t e d f r o m h ig h e r c o s t s o f s e r v ­
i c e s p e r f o r m e d b y s k ille d l a b o r
s u c h as h o m e m a in t e n a n c e and r e ­
p a i r s , h a i r c u t s , and auto r e p a i r .
T h ose s e r v ic e s re q u irin g l e s s s k ille d l a b o r —d o m e s t i c w o r k , la u n ­
d r y , d r y c l e a n i n g , and b a b y s i t t e r s —
c o n t r ib u t e d a n o th e r 10 p e r c e n t .
The
a d d itio n a l 5 p e r c e n t c a m e f r o m o t h e r
" s e r v i c e i n d u s t r i e s " su ch as m o v i e
a d m i s s i o n s , b o w lin g c h a r g e s , f u ­
n e r a l s , and l e g a l f e e s . In 1967,
ch a rg e s fo r m o st of these s e r v ic e s
co n tin u e d t h e ir r a p id a d v a n c e , as can
b e s e e n f r o m the f o l l o w i n g t a b u la t io n :

D em a n d T r e n d s and P r i c e s . In r e ­
c e n t y e a r s the l a r g e s t r i s e in s e r v i c e
p r i c e s has b e e n in m e d i c a l c a r e w h ic h
a l s o s h ow ed the g r e a t e s t i n c r e a s e in
d em an d . B e t w e e n 1956 and 1966, c o n ­
s u m e r s p en d in g ju m p e d t w o - t h i r d s (in
c o n s ta n t d o l l a r s ) f o r m e d i c a l c a r e and
l e s s e r a m ou n ts f o r m o s t o t h e r " s e r v ­
i c e in d u s t r ie s . " T h e o n ly s ig n if ic a n t
sp en d in g d e c r e a s e s w e r e f o r d o m e s t i c
s e r v i c e and m o t i o n p i c t u r e a d m i s s i o n s
w h ic h , h o w e v e r , a l s o i n c r e a s e d
c h a r g e s as c o s t s r o s e .
B e t w e e n 1964 and 1967, c h a r g e s
f o r a ll m e d i c a l c a r e s e r v i c e s c l i m b e d
18 p e r c e n t . H o s p it a l d a ily r a t e s s k y ­
r o c k e t e d 36 p e r c e n t ; a l m o s t h a lf o f
the i n c r e a s e t o o k p l a c e in 1967. D e ­
s p ite r i s i n g c h a r g e s , r e a l s p en d in g
f o r m e d i c a l c a r e s e r v i c e s has c o n t i n ­
ued to g r o w . E x p e n d it u r e s f o r m e d i ­
c a l c a r e s e r v i c e s (in c o n s ta n t d o l l a r s )
r o s e 8 1/2 p e r c e n t in 1964, 6 1/2 p e r ­
c e n t in 1965, and 3 1/2 p e r c e n t in 1966.
C o n s u m e r s p e n d in g f o r h o s p it a l c a r e
d u r in g the s a m e 3 y e a r s r o s e 24 p e r ­
c e n t (in c o n s ta n t d o l l a r s ) . G r o w in g
u t iliz a t io n o f h o s p it a l f a c i l i t i e s w h ic h
w a s m a d e p o s s i b l e b y the w id e a d o p ­
tion o f h ea lth in s u r a n c e p lan s and the
co n tin u in g p r o s p e r i t y o f the e c o n o m y
p la y e d a s ig n if ic a n t r o l e . A t the s a m e
t i m e , the u s e o f new and e x p e n s iv e
e q u ip m e n t and d r u g s , the i m p r o v e d
q u a lity o f h o s p it a l s e r v i c e s and b e t t e r

H o u s e k e e p in g and
h o m e m a in t e n a n c e
1966:
D ec. -M a r . . . . . .
M a r .—J u n e .............
J u n e -S e p t . , , . . .
Sept. - D e c ..................

....................
....................
....................
....................

1967:
D e c. - M a r .................
M ar. - J u n e ............. ....................
J u n e -S e p t .................. ....................
Sept. - D e c .................. ....................




O th er
se rv ice s

M e d ic a l
care

Personal
care

1.2
1.7
1. 6
1.7

1.5
1.7
2.4
2.3

1.2
2.0
1.2
0.9

1. 0
0.9
1. 1

1.3
1. 6
1.3

2.5
1. 6
1. 9
1. 6

1. 0
0. 8
1. 2
1. 2

0.7
1.2
0.9
1.3

1. 1

29

paid h o s p it a l p e r s o n n e l r a i s e d the
c o s t o f a h o s p ita l stay.
In c o n t r a s t w ith the g r o w t h in
r e a l dem and f o r m e d i c a l c a r e , c o n ­
s u m e r sp en d in g on s o m e s e r v i c e s
su c h as m o v i e a d m i s s i o n s and d o ­
m e s t i c s e r v i c e s has con tin u ed to
in c h d ow n w a rd in r e c e n t y e a r s , and
s p en d in g f o r la u n d r y and d r y c l e a n ­
ing has r e m a in e d r e l a t i v e l y s ta b le.
P r i c e s f o r a ll t h e s e s e r v i c e s , h o w ­
e v e r , i n c r e a s e d m a r k e d ly .
T h e s lo w d o w n in d em an d f o r
s o m e s e r v i c e s , s p a r k e d in s o m e
c a s e s b y the in t r o d u c t io n o f s u b ­
s tit u t e s , has b e e n s p e e d e d by
h ig h e r p r i c e s .
The in t r o d u c t io n
o f w a s h - a n d - w e a r f a b r i c s , as
w e l l as i n c r e a s e d c o m p e t it io n
f r o m w i d e r u s e o f a u t o m a t ic
w a s h in g m a c h in e s in the h o m e and
in s e l f - s e r v i c e e s t a b lis h m e n t s ,
has b e e n a f a c t o r in the d e c l i n e o f
the p r o p o r t i o n o f a ll c o n s u m e r
s p e n d in g a llo c a t e d to la u n d r ie s
and d r y c le a n in g e s t a b lis h m e n t s .
R e d u c e d o u tla y s f o r d o m e s t i c
s e r v i c e s a ls o r e f l e c t , to s o m e
extent, the i n c r e a s e d u s e o f h o m e
a p p lia n c e s f o r w h ic h p r i c e s —in
c o n t r a s t to s e r v i c e p r i c e s — d e ­
c lin e d in the p o s t - K o r e a n y e a r s .
A c c o r d i n g to a r e c e n t l y p u b ­
l is h e d study: 1 2 /
" W h e r e the s k ill r e ­
q u ir e d to p e r f o r m the
s e r v i c e is r e l a t i v e l y
lo w and t im e can be
s a v e d by the c o n s u m e r
if he d o e s the w o r k h i m ­
s e l f , he is te m p te d to
m a k e this t r a n s f e r .
I m p r o v e d t e c h n o lo g y o ften
le n d s im p e tu s . Not o n ly do
the m o r e e f f ic ie n t u s e o f
t im e and i m p r o v e d t e c h ­

n o lo g y m o t iv a t e the c o n ­
s u m e r ; as u n s k ille d w a g e s
r i s e in r e la t io n to o th e r
w a g e s , p e o p l e tend to
s u b s titu te t h e ir ow n la b o r
f o r that o f the u n s k ille d
w o r k e r ' s . . . . But the
im p a c t o f the t r a n s f e r o f
s e r v i c e to the h o m e f r o m
in d u s t r y is p r o b a b l y not
lim it e d to the m o r e
m e n ia l s e r v i c e s . A s the
l e v e l o f e d u c a t io n has
r i s e n , s e r v i c e s at on e
t im e thought d iff ic u lt and
t h e r e f o r e r e l e g a t e d to
p r o f e s s i o n a l s a r e now a t ­
te m p te d at h o m e . ff
P r o d u c t iv it y , in r e c e n t y e a r s , cne
l a r g e s t p r i c e i n c r e a s e s h av e b e e n f o r
h o s p it a l c h a r g e s , p h y s i c i a n s 1 f e e s ,
m o v ie ad m ission s, d om estic s e rv ic e ,
la u n d r y s e r v i c e and h a ir c u t s . A b a s i c
c h a r a c t e r i s t i c o f t h e s e s e r v i c e s is the
lim it e d am ou n t o f p r o d u c t iv it y ga in s —
w h e th e r p e r f o r m e d by p r o f e s s i o n a l ,
s k ille d , o r u n s k ille d w o r k e r s .
P rice
in c r e a s e s have been som ew hat m o r e
m o d e r a t e f o r auto r e p a i r , b ea u ty shop,
and d r y c l e a n i n g s e r v i c e s w h e r e s o m e
p r o d u c t i v i t y ga in s h a v e b e e n m a d e
p o s s i b l e b y the in t r o d u c t io n o f t i m e ­
s a v in g e q u ip m e n t and t r a in in g p r o gram s.
In t h e ir stu dy, F u c n s and W ilb u rn iA /
c o n c lu d e d that b e t w e e n 1948 and 1963
the l a r g e s t i n c r e a s e in r e a l output p e r
m a n a m o n g the eight s e r v i c e s stu died
w a s a c h ie v e d by the auto r e p a i r in ­
d u s t r y w h e r e output p e r m an r o s e an
a v e r a g e o f 1. 85 p e r c e n t annually.
A m on g other s e r v ic e in d u stries,
r e a l output p e r m a n o v e r this 1 5 y e a r p e r i o d i n c r e a s e d 1. 65 p e r c e n t
f o r d r y c l e a n i n g e s t a b lis h m e n t s ,
1. 54 p e r c e n t f o r b ea u ty s h o p s , and

127 P r o d u c t i v i t y D i f f e r e n c e s Within the S e r v i c e S e c t o r b y V ic t o r R. F u c h s
and J ea n A l e x a n d e r W ilb u rn , O c c a s i o n a l P a p e r 102, N ation al B u re a u o f
E c o n o m i c R e s e a r c h , New Y o r k , 1967, p. 105.
Ibid, pp. 17 and 18.
30



0. 19 p e r c e n t f o r b a r b e r s h o p s .
R e a l output p e r m a n d e c lin e d an
a v e r a g e o f . 03 p e r c e n t ann ually f o r
l a u n d r i e s , and 3. 4 p e r c e n t f o r m o ­
tion p i c t u r e t h e a t e r s .
F o r a ll eigh t s e r v i c e s c o m b in e d
(auto r e p a i r , b a r b e r s h o p s , b e a u ty
s h o p s , d r y c l e a n e r s , h o t e ls and
m o t e l s , l a u n d r i e s , m o t io n p i c t u r e
t h e a t e r s , and s h o e r e p a i r ) the
a v e r a g e annual i n c r e a s e in r e a l
output p e r m a n w a s o n ly .21 p e r c e n t
c o m p a r e d w ith 1. 72 p e r c e n t i o r 10
r e t a i l t r a d e s , 2. 60 p e r c e n t f o r all
m a n u fa c t u r in g , and 3. 07 p e r c e n t
f o r the e n t ir e g o o d s s e c t o r o f the
e c o n o m y . F o r the total e c o n o m y ,
the a v e r a g e annual r i s e in output
p e r m a n w a s 2. 14 p e r c e n t .
C o s t s . W h eth er c o n s u m e r d e ­
m and c l i m b s as f o r m e d i c a l c a r e
o r d e c r e a s e s as f o r m o v i e s , s e r v ­
i c e in d u s t r y c h a r g e s k e e p r i s i n g ,
as p r o d u c t i v i t y ga in s c o n tin u e to
b e o u tp a c e d b y c o s t i n c r e a s e s .
In a d d ition to r i s i n g w a g e s , the
h ig h e r c o s t s o f m a t e r i a l s , e q u ip ­
m e n t, o v e r h e a d , a n d —f o r s o m e
o f the s e r v i c e s , c o n s t r u c t i o n —
have exerted co n s id e ra b le up­
w a r d p r e s s u r e on p r i c e s in r e ­
cent y e a rs.
l nuugn the p r o p o r t i o n v a r i e s ,
l a b o r c o s t s r e p r e s e n t a s u b s ta n tia l
p a r t o f total c o s t s .
W a g es in 1966
a c c o u n t e d f o r abou t t w o - t h i r d s of
tota l h o s p it a l c o s t s . P a y r o l l s e q u a le d
abou t 50 p e r c e n t o f tota l 1963 s a le s
r e c e i p t s in p o w e r la u n d r ie s , o v e r 40
p e r c e n t in bea u ty and b a r b e r s h o p s ,
and in c le a n in g and d y e in g p la n ts , and
f r o m 25 to 30 p e r c e n t o f s a le s in
m o s t r e p a i r s h o p s .J K

E a r n in g s o f la u n d r y and d r y c l e a n i n g
w o r k e r s and o f h o s p it a l e m p l o y e e s , in
p a r t i c u l a r , i n c r e a s e d m u c h m o r e in
1966 than in p r i o r y e a r s . A v e r a g e
h o u r ly e a r n in g s o f p r o d u c t i o n w o r k e r s
in la u n d r y , c le a n in g , and d y e in g
p lan ts a d v a n c e d o v e r 5 p e r c e n t ann ually
b e t w e e n 1963 and 1966, abou t t w i c e the
annual i n c r e a s e o f the 3 p r e c e d i n g
years. H /
A lth o u g h l a r g e i n c r e a s e s
f o r h o s p it a l e m p l o y e e s c a m e a f t e r
m id -1 9 6 6 , a v era ge stra ig h t-tim e
e a r n in g s o f g e n e r a l duty n u r s e s in
s h o r t - t e r m h o s p it a ls in m e t r o p o l i t a n
a r e a s r o s e 20 p e r c e n t b e tw e e n m i d 1963 and m i d - 1 9 6 6 , m e d i c a l t e c h n o l ­
o g i s t s 18 p e r c e n t , and p r a c t i c a l n u r s e s ,
m a i d s , and h o s p it a l p o r t e r s 16 p e r ­
cent. 1 6 /
T h e M e d i c a r e p r o g r a m w h ic h w en t
into e f f e c t in m i d - 1 9 6 6 u n d ou b ted ly had
an im p a c t on h o s p it a l c h a r g e s .
In a d ­
d ition , s o m e o f the la te 1966 and e a r l y
1967—p r i c e i n c r e a s e s a m o n g h o s p it a ls ,
la u n d r ie s , s c h o o l s , and h o t e ls w e r e a t ­
t r ib u t e d by e m p l o y e r s to h ig h e r l a b o r
c o s t s s t e m m in g f r o m the 1966 a m e n d ­
m e n t s to the F a i r L a b o r S ta n d a rd s
A c t e f f e c t i v e F e b r u a r y 1, 1967. F o r
the f i r s t t im e F e d e r a l m in im u m w a g e
and o v e r t i m e p r o v i s i o n s w e r e e x te n d e d
to c o v e r t h e s e s e r v i c e i n d u s t r i e s .
Interest, Insurance, T a x e s, and Rent

A tight m o n e y s u p p ly , r i s i n g
c o s t s , and c o n tin u e d e x p a n s io n
o f d em a n d w e r e m a j o r f a c t o r s l e a d ­
ing to h ig h e r p r i c e s f o r t h o s e s e r v ­
ic e s w h ere com p en sa tion fo r p e rs o n a l
e f f o r t d o e s not f o r m a l a r g e s h a r e o f
tota l c o s t . In 1966, o v e r o n e - t h i r d
o f the r i s e in s e r v i c e p r i c e s w a s

1 1 / S e le c t e d S e r v i c e s , S u m m a r y S t a t i s t i c s , 1963 C e n s u s o f B u s i n e s s ,
V o lu m e VI, U. S. D e p a r t m e n t o f C o m m e r c e ,
1966.
1^/ E m p lo y m e n t and E a r n in g s and M onthly R e p o r t on the L a b o r F o r c e ,
U. S. D e p a r t m e n t o f L a b o r , B u r e a u o f L a b o r S t a t is t ic s .
-1^/ " E a r n i n g s o f H o s p it a l N u r s e s , Ju ly 1966, " M onthly L a b o r R e v i e w ,
June 1967, p. 57; and In d u stry W age S u rv ey , H o s p it a ls , M i d - 1963 and
Ju ly 1966, B L S B u lle tin s 1409 and 1553.




31

c a u s e d b y f in a n c ia l s e r v i c e s and
t a x e s , and h ig h e r r e n t s a c c o u n t e d
f o r a n o t h e r 5 p e r c e n t . A lth o u g h
t h e s e s e r v i c e s con tin u ed r i s i n g in

1967, the a d v a n c e s —e x c e p t f o r r e n t —
w e r e m o r e m o d e r a t e , as c a n be s e e n
f r o m the f o llo w in g ta b u la tion :
Q u a r t e r l y P e r c e n t C h ange In—
In s u r a n c e and fin a n c e

1/

Rent

1 9 66 :
D e c. - M a r ....................
M ar. —J u n e ................
J u n e —Sep t.....................
Sept. —D e c ....................

....................
....................
. . . . . . .
....................

1.2
2.7
1.1
2.1

0.4
0.3
0.5
0.5

....................
....................
....................
....................

0.3
0.7
0. 8
1 .3

0.4
0.4
0.5
0. 6

1967:
D e c . —M a r ....................
M a r. —J u n e ................
J u n e —Sep t.....................
Sept. —D e c ....................

1 / In clu d e s m o r t g a g e i n t e r e s t , p r o p e r t y t a x e s , and auto and
p r o p e r t y in s u r a n c e .
A su b s ta n tia l s h a r e o f the 1966
r i s e in c h a r g e s f o r f in a n c ia l and
r e l a t e d s e r v i c e s w a s due to the
s t e e p c l i m b in m o r t g a g e i n t e r e s t
r a t e s . A s d e v e lo p m e n t s in the
m o n e y m a r k e t in la te 1965 and
e a r l y 1966 le d to s h o r t a g e s o f
m o r t g a g e fu n d s, m o r t g a g e
i n t e r e s t r a t e s r o s e 13 p e r c e n t on
F H A - i n s u r e d l o a n s , 14 p e r c e n t on
VA lo a n s , 12 p e r c e n t on c o n v e n ­
t io n a l lo a n s f o r new h o m e s , and 9
p e r c e n t on c o n v e n t io n a l lo a n s f o r
e x is t in g h o m e s .
W hile the e a s in g
o f m on etary restra in ts caused
m o r t g a g e i n t e r e s t r a t e s to e d g e
dow n in the f i r s t h a lf o f 1967, i n ­
t e r e s t c h a r g e s m o v e d up a ft e r m i d ­
y e a r as h o u s in g s ta r t s r e c o v e r e d
f r o m t h e ir 1966 low and d e m a n d s f o r
a v a ila b le funds i n c r e a s e d .
The 1966 i n c r e a s e in re n t c h a r g e s ,
the l a r g e s t s i n c e 1959, a l s o s t e m m e d
to s o m e extent f r o m the tight m o n e y
su p p ly , w h ich m a d e h o m e p u r c h a s e
l e s s lik e l y and, so, i n c r e a s e d the
d em a n d f o r r e n t a l units.
T h is i m ­
p o r ta n t, but s l o w - t o - c h a n g e c o s t ,
32



con tin u ed r i s i n g in 1967 as v a c a n c y
r a t e s r e m a i n e d lo w and h ig h e r
c o s t s — t a x e s , m a in t e n a n c e f e e s , and
r e p a i r c h a r g e s — c a u s e d la n d lo r d s to
r a is e rents.
I n s u r a n c e rates, a d v a n c in g s t e a d ily
th rou gh ou t the 1960*8, h a v e i n c r e a s e d
m o r e s h a r p ly in r e c e n t y e a r s —auto
i n s u r a n c e s k y r o c k e t e d 20 p e r c e n t and
p r o p e r t y i n s u r a n c e 18 p e r c e n t b e ­
tw een 1964 and 1967. R a p id ly e x ­
panding a u t o m o b ile o w n e r s h ip has le d
to m o r e f r e q u e n t a c c i d e n t s and to
m o r e p ro p e rty dam age. A ls o , risin g
c o s t s o f m e d i c a l c a r e and o f auto
and p r o p e r t y r e p a i r s h a v e r e s u l t e d
in l a r g e r a w a r d s f o r p e r s o n a l in ­
j u r i e s and f o r d a m a g e to p r o p e r t y
or cars.
Within the l a s t few y e a r s ,
m o s t States hatve gr a n te d the r a t e
i n c r e a s e s r e q u e s t e d by i n s u r a n c e
com p a n ies.
R e s id e n t ia l p r o p e r t y tax r a t e s
a l s o c l i m b e d s t e e p ly as State and
l o c a l g o v e r n m e n t s s u p p lie d m o r e
s e r v i c e s to c o m m u n i t i e s and r a i s e d
sa la rie s o f governm ent w o rk e rs.
F o r the m o s t p a r t , r i s i n g m u n i c i -

p a l c o s t s h a v e b e e n m e t b y h ig h e r
t a x e s on r e a l p r o p e r t y , although
s o m e States a l s o h a v e a d op ted o r
i n c r e a s e d s a l e s and i n c o m e t a x e s
to p a y s o m e o f t h e s e c o s t s .
U tilities and Public Transportation

A m o n g the p u b l i c l y r e g u la t e d s e r v ­
i c e s , u t ilit y r a t e s h a v e b e e n s ta b le
s i n c e 1964 as h ave a i r l i n e and r a i l ­
r o a d f a r e s . H o w e v e r , bus and ta x i
f a r e s h a v e r i s e n s h a r p ly . (See t a b le 4. )
T h ro u g h o u t the 1 9 6 0 's p o p u la ­
tio n g ro w th as w e l l as u r b a n and
s u b u rb a n d e v e lo p m e n t c a u s e d d e ­
m an d f o r e l e c t r i c i t y , g a s , and t e l e ­
p h on e s e r v i c e to r i s e s u b s ta n t ia lly
e a c h y e a r . In a d d itio n , p u r c h a s e
o f h o m e a p p lia n c e s su ch as a ir c o n ­
d i t i o n e r s , d i s h w a s h e r s , w a s h in g
m a c h i n e s , and d r y e r s c r e a t e d new
d e m a n d s f o r e l e c t r i c i t y and g a s.
D e s p it e the u p s u r g e , gas and e l e c ­
t r i c r a t e s in 1967 w e r e abou t the
s a m e as in 1964 and c h a r g e s f o r
t e le p h o n e s e r v i c e w e r e l o w e r as
p r o d u c t i v i t y ga in s k ept p a c e w ith
risin g co sts.
S h o r tly a f t e r m i d 1967, h o w e v e r , c h a r g e s f o r e l e c ­
t r i c i t y r o s e m o r e than at any t i m e in
r e c e n t y e a r s as r a t e s w e r e i n c r e a s e d
in s o m e c i t i e s and s a l e s ta x e s w e r e
p la c e d on u t ilit ie s in o t h e r s .
In c o n t r a s t to the r i s i n g d em a n d
but s ta b le p r i c e l e v e l f o r u t i l i t i e s ,




l o c a l t r a n s it f a r e s h a v e e v id e n c e d a
l o n g - r u n s lid e in d e m a n d a c c o m ­
p a n ied b y c l i m b i n g p r i c e s .
C onsum er
e x p e n d it u r e s f o r l o c a l t r a n s it d e c lin e d
s t e a d ily f o r 20 y e a r s a f t e r W o r ld W ar
II and, in 1965, r e a l s p e n d in g w a s 70
p e r c e n t l o w e r than in 1945. A lth o u g h
the f a ll in d em a n d w a s g r e a t e s t in
the 1 9 5 0 's as c a r o w n e r s h ip m u l t i ­
p lie d and the m i g r a t i o n to the
s u b u r b s r e a c h e d a p ea k , the d e ­
c l i n e con tin u ed in the 1 9 6 0 's . A t the
s a m e t im e , l a b o r c o s t s —w h ic h
c l a i m t w o - t h i r d s o f o p e r a t in g r e v e n u e c l i m b e d r a p id ly .
T o o f f s e t the d e ­
c l i n e in r e v e n u e c a u s e d b y f e w e r
p a s s e n g e r s and r i s i n g c o s t s , t r a n s it
f a r e s w e r e r a i s e d r e p e a t e d ly .
A s the s lid e d o w n w a r d in n u m ­
b e r o f p a s s e n g e r s d im in is h e d a f t e r
1958, the s h a r p f a r e i n c r e a s e s o f
the im m e d i a t e p o s t w a r p e r i o d —
a l m o s t 10 p e r c e n t an n u ally b e t w e e n
1947 and 195 4— s la c k e n e d to l e s s
than h a lf that am ount.
In 1964
and 1965, both p a s s e n g e r v o l u m e
and f a r e s w e r e m o r e s ta b le than
at any o t h e r t i m e s i n c e W o r ld
W ar II.
In 1966, h o w e v e r , l o c a l
t r a n s it r a t e s a g a in a d v a n c e d s h a r p ly as
New Y o r k
C ity f a r e s —w h ic h c a r r y
a h e a v y w e ig h t in the C o n s u m e r
P rice
In d e x —w e r e
ra ised
a ft e r
a 1 2 - d a y s t r i k e . S in c e then, f a r e s
in o t h e r c i t i e s h av e r i s e n .

33

CHAPTER IV
Prices of Industrial Materials and Products
A f t e r h o ld in g s te a d y s i n c e
m i d - 1958, p r i c e s o f in d u s t r ia l
c o m m o d i t i e s r e p r e s e n t e d in the
W h o le s a le P r i c e Index tu rn ed up
in 1964 and,
b y the f i r s t h a lf
o f 1966,
w e r e r i s i n g f a s t e r than
at any t im e s i n c e the 1955 —57
in v e s t m e n t b o o m .
The in c r e a s e s
s lo w e d a f t e r m i d - 1966 and h a lt ­
ed c o m p l e t e l y b e t w e e n F e b r u a r y
and Ju ly o f 1967. The f o l l o w i n g
m on th , h o w e v e r , w h o l e s a l e in ­
d u s t r ia l p r i c e s r e s u m e d t h e ir
in t e r r u p t e d up tren d . R e t a il p r i c e s
o f m a n u fa c t u r e d g o o d s —w h ich
had m o v e d up s lo w ly t h r o u g h ­
out the y e a r s o f s ta b ilit y at
the w h o l e s a l e l e v e l —b e g a n to
r i s e f a s t e r in the f a ll o f 1965
and h av e s p e e d e d t h e ir a d ­
v a n c e s t e a d ily s in c e then.
(See
t a b le s 6 and 7. )
D u rin g m o s t o f this p e r i o d ,
p r i c e t r e n d s f o r in d u s t r ia l
m a te ria ls d iffe re d m a rk ed ly fro m
t h o s e f o r f in is h e d g o o d s .
For
e x a m p le , the 5 m on th s o f
w h o l e s a l e p r i c e s ta b ilit y in the
f i r s t p a r t o f 1967 w a s the r e ­
sult o f s h a r p ly f a llin g c r u d e
m a t e r i a l s p r i c e s o f fs e t t in g
m od era te p r ic e advances am ong
the m u c h l a r g e r f in is h e d g o o d s
sector.
In g e n e r a l , p r i c e s o f
in d u s t r ia l m a t e r i a l s and f in is h e d
p r o d u c e r s ' g o o d s w e r e the f i r s t
to r e s p o n d to the e c o n o m i c

34



e x p a n sio n .
C on sum er goods
p r i c e s r e a c t e d la s t , but co n tin u e d
to i n c r e a s e b e t w e e n m i d - 1966 and
m i d - 1967,
w h en m a n y m a t e r i a l s
p r i c e s d r o p p e d o r l e v e l e d off.
B e c a u s e p r i c e s o f c r u d e in ­
d u s t r ia l m a t e r i a l s tend to sw in g
w i d e l y , th e ir im p a c t on the in ­
d u s t r ia l p r i c e l e v e l is d i s p r o p o r ­
tio n a te to th e ir in d e x w e ig h t
s i n c e they a c c o u n t f o r o n ly 3 1 / 2
p e r c e n t o f a ll in d u s t r ia l c o m m o d i ­
t ie s in the W h o le s a le P r i c e In­
dex.
In c o n t r a s t , the in t e r m e d ia t e
m a t e r i a l s g r o u p w h ic h in c lu d e s
lu m ber,
other c o n s tru ctio n m a ­
t e r i a l s , and s t e e l and n o n f e r r o u s
m i l l p r o d u c t s c o n s t it u t e s 55 p e r ­
ce n t. F in is h e d c o n s u m e r g o o d s
m a k e up a n o th e r 29 p e r c e n t , and
p r o d u c e r s ' g o o d s the r e m a in in g
13 p e r c e n t .
A s can b e s e e n f r o m the
follow in g
ta b u la tion , p r i c e s o f
cru d e m a te ria ls re tre a te d substan­
t ia lly f r o m t h e ir e a r l y 1966 high,
but t h o s e at e v e r y o t h e r s ta g e
o f p ro ce ssin g
averaged
h ig h e r
in
1967 than
in
1966.
For
con su m er goods,
both w h o l e s a l e
and
reta il
p rice s
have
risen
over
4 percen t
sin ce
the c u r ­
r e n t upturn b e g a n
and,
in
c o n t r a s t w ith
every
other
sec­
tor
o f the
econom y,
ad­
v a n c e d at a f a s t e r
pace
in
1967 than
in
1966.

Annual a v e r a g e s
1964

1965

1966

Percent
change
1967

1 9 6 4 -6 7

(195 7 -5 9 = 1 0 0 )
W P I: In d u s tr ia l C o m m o d i t i e s . .
C r u d e m a t e r i a l s .................................
I n t e r m e d ia t e m a t e r i a l s .................
F in is h e d c o n s u m e r g o o d s .............
N o n d u r a b le s .................................
D u r a b l e s ...........................................
P r o d u c e r g o o d s .................................

101.
97.
100.
100.
101.
99.
104.

C P I : C o m m o d i t i e s l e s s fo o d . .
N o n d u r a b l e s . .................................
D u r a b l e s ...........................................

104. 4
105. 7
103. 0

Underlying Econom ic Influences

A lt h o u g h the b u s i n e s s e x p a n s io n
o f the e a r l y 1 9 6 0 's did not a f f e c t in ­
d u s t r ia l p r i c e s a p p r e c i a b l y until
la t e in 1963, it p r o v i d e d the u n d e r ­
ly in g s tr e n g th f o r the p r i c e a c c e l ­
e r a t io n w h ic h f o l l o w e d o u r h e ig h te n e d
i n v o lv e m e n t in V iet N am in 1965.
B e t w e e n 1961 and 1964, the a v e r a g e
o p e r a t in g r a t e in m a n u fa c t u r in g i n ­
d u s t r i e s r o s e f r o m 79 to a l m o s t 86
p e r c e n t o f c a p a c i t y u t iliz a t io n , the
in d e x o f in d u s t r ia l p r o d u c t io n in ­
c r e a s e d f r o m 110 (1957 —59 = 100) to
132, and the u n e m p lo y m e n t r a t e f e l l
f r o m 6. 7 to 5. 2 p e r c e n t o f the l a b o r
force.
R e v e rsin g severa l yea rs of p r ic e
d e c l i n e s , in d u s t r ia l m a t e r i a l s
p r i c e s tu rn ed u p w a rd in 1964.
C rude m a te ria ls p r ic e s clim b ed
r a p i d l y due to a n u m b e r o f s p e c i a l
situ a tio n s w h ic h c r e a t e d s u p p ly
s h o r t a g e s at a t i m e o f exp an d in g
d e m a n d , but p r i c e s o f i n t e r m e ­
d ia te m a t e r i a l s r o s e o n ly m o d e r ­
a te ly . P r o d u c e r s ' g o o d s p r i c e s
b e g a n to r i s e s u b s ta n t ia lly as
g r o w in g p r e s s u r e on m a n u fa c t u r in g
c a p a c i t y s tim u la te d a d d itio n a l i n ­
v e s t m e n t in eq u ip m e n t on top o f a
c a p it a l g o o d s e x p a n s io n a l r e a d y
f u e le d b y the l i b e r a l i z e d d e p r e c i a t i o n




2
1
2
9
6
9
1

102.
100.
101.
101.
102.
99.
105.

5
9
5
6
8
6
4

105. 1
107. 2
102. 6

104.
104.
103.
103.
104.
100.
108.

8
5
6
2
8
2
0

106. 5
109. 7
102. 7

106.
100.
104.
105.
107.
101.
111.

3
0
8
2
2
7
5

5.
3.
4.
4.
5.
1.
7.

0
0
6
3
5
8
1

4. 6
7. 0
1. 3

109. 2
113. 1
104. 3

r e g u la t io n s o f 1962, the 7 - p e r c e n t i n ­
v e s t m e n t tax c r e d i t p a s s e d in 1962 and
l i b e r a l i z e d in 1964, and the 1964 in ­
c o m e ta x r e d u c t io n .
A lth o u g h the u p turn in the e c o n o m y
had s p u r r e d a r i s e in d em a n d f o r c o n ­
s u m e r g o o d s as e a r l y as 1962, w h o l e ­
s a le p r i c e s f o r s u c h p r o d u c t s held
r e l a t i v e l y s ta b le th r o u g h 1964. P r o ­
d u c t iv it y ga ins kept p a c e w ith c o s t
i n c r e a s e s , plant c a p a c i t y and l a b o r
r e s o u r c e s w e r e not fu lly u t iliz e d , and

Chart 7 . Finished Consumer Goods

1964

1965

1966

1967

35

the m a r k e t r e m a in e d c o m p e t i t i v e .
R e t a il p r i c e s , h o w e v e r , b e g a n to
a d v a n c e s lig h t ly f a s t e r than in p r e ­
v io u s y e a r s .
In 1965 and 1966, as m i l i t a r y
n e e d s a r i s i n g f r o m the V iet Nam
c o n f l i c t w e r e s u p e r i m p o s e d upon
an a l r e a d y p r o s p e r i n g e c o n o ­
m y , p r e s s u r e s on a v a ila b le r e ­
s o u r c e s in t e n s ifie d . In e a r l y
1966^ unit l a b o r c o s t s in the p r i ­
v a te econom y-12/ a d v a n c e d s i g n i ­
f i c a n t l y f o r the f i r s t t im e in 6
y e a r s as i n c r e a s e d e m p l o y e e c o m ­
p e n s a t io n o u tp a c e d p r o d u c t iv it y
g a in s . O p e r a t in g r a t e s in m a n u ­
f a c t u r i n g in d u s t r ie s held c l o s e to
9 1 - p e r c e n t u t iliz a t io n o f c a p a c i t y
th r o u g h m o s t o f 1966, the in d e x
o f in d u s t r ia l p r o d u c t io n r o s e to
159 ( 1 9 5 7 - 5 9 = 1 0 0 ) in the f a ll o f
the y e a r , u n e m p lo y m e n t r a t e s
f e l l b e lo w 4 p e r c e n t , and a f t e r ­
tax p r o f i t s o f c o r p o r a t i o n s c l i m b e d .
B y e a r l y 1966, w h o l e s a l e in d u s ­
t r i a l p r i c e s w e r e r i s i n g at the
f a s t e s t p a c e in a d e c a d e .
The levelin g off o f cru d e
m a t e r i a l p r i c e s in the s p r in g o f
1966 and t h e ir s h a r p s lid e a ft e r
m i d - y e a r p r e c e d e d the g e n e r a l
s lo w d o w n in b u s i n e s s a c t iv it y . In
s o m e in s t a n c e s , m a r k e d i m p r o v e ­
m e n t s in d o m e s t i c o r w o r l d s u p p lie s
c a u s e d p r i c e s w h ic h had p r e v i o u s l y
c l i m b e d s t e e p ly to fa ll a l m o s t as
m u c h as t h e ir p r e v i o u s r i s e .
M ore
s ig n if ic a n t ly , the tight 1966 m o n e y
s u p p ly s itu ation and high i n t e r e s t
r a t e s had t h e ir e a r l i e s t and m o s t
d r a s t i c e f f e c t s on in d u s t r ie s w h ich
w e re la rg e u s e rs o f m a teria ls —
h o u s in g c o n s t r u c t i o n , auto p r o d u c ­
tion , and a p p lia n c e m a n u fa c tu r in g .
In a d d ition , s la c k e n in g e c o n o m i c
a c t iv it y in s e v e r a l m a j o r E u r o p e a n

c o u n t r ie s fu r th e r d a m p e n e d d em an d
f o r both c r u d e and in t e r m e d ia t e m a ­
t e r i a l s . B etw een m i d - 1966 and m i d 1967, c r u d e m a t e r i a l s p r i c e s p l u m ­
m e t e d w h ile t h o s e f o r i n t e r m e d ia t e
m a t e r i a l s r e m a in e d stea d y .
The e c o n o m i c s lo w d o w n in this
c o u n t r y w h ic h b e g a n in la te 1966 and
con tin u ed until m i d - 1967 a l s o m o d ­
erated p r ic e a dva n ces fo r p rod u cers*
g o o d s , but the i m p a c t on c o n s u m e r
g o o d s w a s n e g lig ib le . B oth w h o l e s a l e
and r e t a il p r i c e s o f c o n s u m e r p r o d u c t s
co n tin u e d to r i s e in the l a s t h a lf o f
1966 a n d —f o r n o n d u r a b le s — gained
f u r t h e r m o m e n t u m in the f i r s t h a lf o f
1967. C o s t s o f l a b o r , t r a n s p o r t a t io n ,
m a r k e t in g , and c r e d i t i n c r e a s e d
s h a r p ly and co n tin u e d to e x c e e d p r o ­
d u c t iv it y g a in s.
In a d d ition , s o m e o f
the e a r l i e r p r i c e i n c r e a s e s f o r m a ­
t e r i a l s s t ill w e r e w o r k in g t h e ir w a y
th rou g h to the fin a l l e v e l s o f p r o d u c ­
tion. A lth o u g h p r e s s u r e s on m a n u ­
f a c t u r in g c a p a c i t y e a s e d and u n e m ­
p lo y m e n t r a t e s e d g ed u p w a rd , r i s i n g
c o s t s and the e f f o r t to r e t a i n —o r
i m p r o v e —p r o f i t m a r g i n s b r o u g h t abou t
s ig n if ic a n t ly h ig h e r p r i c e s f o r f in is h e d
con su m er goods.
When the e c o n o m y r e s u m e d its in ­
t e r r u p t e d e x p a n s io n in m i d - 1967,
p r ic e in cre a s e s for con su m er products
a c c e l e r a t e d , and in d u s t r ia l m a t e r i a l
p r i c e s turned u p w ard . With the c o n ­
tin u a n ce o f strong; c o n s u m e r and
m i l i t a r y d em a n d as w e l T a s m ou n tin g
c o s t - p u s h p r e s s u r e s , the in d u s t r ia l
s e c t o r b e c a m e the m a j o r s o u r c e o f
in f la t io n a r y p r e s s u r e in la t e 1967.
A t the r e t a il l e v e l , r i s i n g c o s t s o f
r e t a ilin g plus the t e n d e n c y to i n ­
c r e a s e r e t a i l m a r k u p s d u rin g a
p e r i o d o f lit t le c o n s u m e r
re sist­
ance
s tim u la te d
a d d itio n a l p r i c e
advances.

—
F o r a d e t a ile d d i s c u s s i o n , s e e " R e c e n t D e v e lo p m e n t s in P r o d u c ­
t iv it y and Unit L a b o r C o s t s " by J e r o m e A . M a rk and M a rtin Z i e g l e r ,
M onthly L a b o r R e v ie w , M ay 1967, p. 28.
36



Specific Price Trends

C e r t a in k e y p r i c e d e v e lo p m e n t s
d u rin g the 3 - y e a r p e r i o d d e s e r v e
With s o m e e x c e p t i o n s , s u b s ta n ­
s p e c i a l m e n t io n b e c a u s e o f t h e ir s i g ­
tia l p r i c e a d v a n c e s h a v e taken p l a c e
n i f i c a n c e to the e n t ir e p r i c e s t r u c t u r e
th r o u g h o u t the in d u s t r ia l s e c t o r s in c e and the a c t io n s tak en to in f lu e n c e them
1964. P r i c e s f o r a ll o f the 13 m a j o r u n d er the w a g e - p r i c e g u id e p o s t p o l i c y .
c o m m o d i t y g r o u p s r e p r e s e n t e d in
A s e a r l y as the s p r in g o f 1962, A d ­
the i n d u s t r ia l c o m p o n e n t o f the
m i n i s t r a t i o n p r e s s u r e had c a u s e d the
W h o le s a le P r i c e Index a v e r a g e d
s t e e l in d u s t r y to r o l l b a c k a tte m p te d
h ig h e r in 1967 than in 1964. In m o s t p r i c e i n c r e a s e s .
In 1965, r i s i n g
in sta n ces, p r ic e advances w e re
p r i c e s f o r n o n f e r r o u s m e t a ls and
s ig n if ic a n t ; f o r s o m e c o m m o d i t i e s ,
le a t h e r l i k e w i s e a r o u s e d c o n c e r n .
In
the i n c r e a s e s w e r e su b sta n tia l.
N o v e m b e r , p r e v i o u s l y a n n ou n ced p r i c e
W h o le s a le p r i c e s o f f o o t w e a r , g a s o ­
i n c r e a s e s f o r p r i m a r y c o p p e r and
lin e , ga s f u e l s , and m e t a lw o r k in g
a lu m in u m in g ot w e r e r e s c i n d e d in
m a c h i n e r y r o s e o v e r 10 p e r c e n t
r e s p o n s e to the A d m i n i s t r a t i o n 's a n t id u r in g this p e r i o d as did p r i c e s f o r
in f la t io n a r y e f f o r t s . A t the s a m e t im e ,
the n o n f e r r o u s m e t a ls g r o u p . E x ­
p r e s s u r e s on in d u s t r ia l c a p a c i t y c a u s e d
c e p t f o r n o n f e r r o u s m e t a ls and a
p r i c e a d v a n c e s to in t e n s ify f o r p r o ­
fe w o t h e r p r o d u c t s w h ich ed ged
d u c e r s ' g o o d s s u ch as m e t a lw o r k in g
dow n in 1967, p r i c e s i n c r e a s e d
and o t h e r m a c h in e r y .
In e a r l y 1966,
s t e a d ily y e a r b y y e a r . P r i c e a d ­
lu m b er p r ic e s r o s e m a rk e d ly b e ca u s e
v a n c e s o f o v e r 5 p e r c e n t —the
o f s p e c i a l c i r c u m s t a n c e s w h ic h c r e a t e d
a v e r a g e f o r a ll in d u s t r ia l c o m m o ­
a s u p p ly b o t t le n e c k .
(See t a b le 7„ )
d it ie s —c o v e r e d such m a jo r c o m ­
A m o n g c o n s u m e r g o o d s , s h a r p ly
m o d i t i e s as l u m b e r , e l e c t r i c a l and
r i s i n g p r i c e s f o r s h o e s and o t h e r
n o n e le c tr ica l m a ch in ery , leath er,
a p p a r e l a t t r a c t e d atten tion , and a u t o ­
t ir e s , paper p rod u cts, m etal c o n ­
m o b i l e p r i c e s b e g a n to r i s e a ft e r
t a i n e r s , and f u r n it u r e . (See ta b le
s e v e r a l y e a r s o f m o d e r a t e d e c lin e .
6. )
In a d d itio n , the M id e a s t c r i s i s and
In c o n t r a s t , a n u m b e r o f i m ­
c l o s i n g o f the Suez C a n al f o c u s e d a t ­
p o r ta n t i n d u s t r ie s h a v e e v id e n c e d
ten tion on o il and p e t r o l e u m p r o d u c t
c o n s i d e r a b l e p r i c e s ta b ilit y and
p r i c e s w h ic h a l r e a d y had r i s e n s u b s t a n ­
p r i c e s o f a fe w p r o d u c t s h a v e d e ­
t i a l l y b e f o r e the m o s t r e c e n t c r i s i s
c r e a s e d , in s o m e c a s e s s u b s t a n ­
d e v e lo p e d in m i d - 1967. (See t a b le 80 )
t ia lly .
L o n g - t e r m d o w n tr e n d s in
S teel M ill P r o d u c t s . The cu rre n t
w h o l e s a l e p r i c e s f o r s y n th e tic
t e x t i l e s , c r u d e r u b b e r , and f l o o r
a d v a n c e in p r i c e s o f s t e e l m i l l p r o ­
c o v e r i n g co n tin u e d a f t e r 1964.
d u cts b e g a n in 1963 and, although
p e r s i s t e n t , has b e e n m o d e r a t e c o m ­
A lth o u g h p r i c e s f o r s o m e o t h e r
c o m m o d itie s a lso a vera ged low er
p a r e d w ith the m o r e s u b s ta n tia l p r i c e
in 1967 than in 1964, the d e ­
i n c r e a s e s d u rin g the m i d - 1 9 5 0 ' s .
P r i c e s o f a l m o s t a ll s t e e l p r o d u c t s
c r e a s e s —as in p ly w o o d and w a s t e p a p e r —t o o k p l a c e a f t e r m i d - 1966.
w e r e r a i s e d at s o m e t im e d u r in g
C o n s i d e r a b l e s ta b ilit y w a s e v id e n c e d the 3 - y e a r p e r i o d ending in D e c e m b e r
1966. R is in g d em a n d f r o m k e y u s e r s
d u r in g this p e r i o d b y su c h c o n s u m e r
su ch as the a u t o m o b i l e , c o n s t r u c t i o n ,
d u r a b le s as h o u s e h o ld a p p lia n c e s
and p a s s e n g e r c a r s w h i c h —a lthough
and m a c h i n e r y in d u s t r ie s p r o v id e d
r i s i n g in 19 6 7 —w e r e s t ill b e lo w
s u p p o r t f o r h ig h e r p r i c e s d e s p it e
t h e ir 1964 l e v e l s , a f t e r a d ju s t m e n t s
s t e p p e d - u p i m p o r t c o m p e t it io n . A l s o ,
h ig h e r c o s t s o f a l lo y in g o r c o a t in g
had b e e n m a d e f o r q u a lity i m p r o v e ­
m ents.
m a t e r i a l s su c h as n i c k e l , z in c , and




37

T a b le 6# W h o le s a le P r i c e In d ex es f o r S e le c t e d In d u stria l C o m m o d i t i e s ,
[ 1 9 5 7 - 5 9 = 100]

Percent
change

A n nual a v e r a g e s
W h o le s a le p r i c e in d e x e s

In d u str ia l C o m m o d i t i e s .................
T e x t i l e p r o d u c t s and a p p a r e l
C otton p r o d u c t s ....................
W o o l p r o d u c t s .......................
M anmade fib er p rodu cts .
A p p a r e l ....................................
H o u s e f u r n is h in g s .................
H id e s , s k in s , le a t h e r &
p r o d u c t s ....................................
H id es and s k i n s ....................
L e a t h e r ....................................
F o o t w e a r .................................
F u e l s , p r o d u c t s , and p o w e r .
C r u d e p e t r o l e u m .................
R e fin e d p e t r o l e u m
p r o d u c t s .................................
G a s o l i n e ..............................
C h e m i c a l s and a llie d p r o d . .
In d u str ia l c h e m i c a l s . . . .
F a ts and o i l s (in e d ib le ) . .
A g ricu ltu ra l ch e m ica ls
and p r o d u c t s ....................
R u b b e r and r u b b e r p r o d u c t s .
C r u d e r u b b e r ..........................
T i r e s and t u b e s ....................
L u m b e r and w o o d p r o d u c t s .
L u m b e r . ....................................
M i l l w o r k ....................................
P l y w o o d ....................................
P u lp , p a p e r , and p r o d u c t s . .
W o o d p u l p .................................
C o n v e r t e d p a p e r and
p a p e r b o a r d .......................
M eta l and m e t a l p r o d u c t s . . .
Iron and s t e e l ................ •. .
N o n f e r r o u s m e t a l s .............
M etal c o n t a i n e r s .................
P lu m b in g f i x t u r e s ................
M a c h in e r y and equ ip m en t. . .
N o n electrica l m a ch in ery .
M e t a lw o r k in g m a c h i n e r y .
E le c tr ic a l m a ch in ery . . .

38



1 9 6 4 —67

1964

1965

1966

1967

101. 2

102. 5

104. 8

106. 3

101.
99.
103.
95.
102.
103.

2
6
0
8
8
5

101.
100.
104.
95.
103.
103.

8
2
3
0
7
1

102.
102.
106.
89.
105.
104.

1
5
0
6
0
4

102.
100.
103.
86.
106.
106.

1
7
2
8
9
1

0.
1.
0.
-9.
4.
2.

9
1
2
4
0
5

104.
87.
102.
108.
97.
96.

6
5
9
5
1
9

109.
111.
108.
110.
98.
96.

2
2
1
7
9
8

119.
140.
121.
118.
101.
97.

7
8
0
2
3
5

115.
94.
110.
122.
103.
98.

8
0
5
1
6
6

10.
7.
7.
12.
6.
1.

7
4
4
5
7
8

92. 7
9 2 .0
96. 7
94. 2
96. 8

95.
94.
97.
95.
112.

9
7
4
0
7

99.
100.
97.
95.
102.

5
2
8
7
8

102.
101.
98.
97.
81.

2
4
4
4
3

10.
10.
1.
3.
-1 6 .

2
2
8
4
0

1 9 6 4 -6 7
5. 0

99.
92.
90.
89.
100.
100.
108.
92.
99.
96.

6
5
6
0
6
7
5
3
0
1

101.
92.
90.
90.
101.
101.
107.
92.
99.
98.

8
9
0
0
1
9
8
3
9
1

102.
94.
89.
93.
105.
108.
110.
92.
10 2.
98.

8
8
2
3
6
5
0
8
6
0

103. 6
97. 0
85. 5
96. 2
105. 4
108. 4
112. 2
89. 3
104. 0
9 8 .0

4. 0
4. 9
-5. 6
8. 1
4. 8
7. 6
3 .4
-3. 3
5. 1
2. 0

98.
102.
100.
105.
105.
100.
103.
108.
110.
96.

3
8
5
9
5
9
8
3
5
8

99. 3
105. 7
1 0 1 .4
115. 2
107. 6
103. 1
105. 0
110. 1
113. 6
96. 8

102.
108.
102.
121.
110.
108.
108.
114.
118.
99.

3
3
3
0
0
4
2
0
8
0

104. 8
109. 5
103. 6
120. 6
111. 8
1 1 0 .4
111. 8
118. 0
123. 8
101. 8

6.
6.
3.
13.
6.
9.
7.
9.
12.
5.

6
5
1
9
0
4
7
0
0
2

T a b le 6# W h o le s a le P r i c e In dexes f o r S e le c t e d In d u stria l
C o m m o d i t i e s , 1964- 6 7 — C on tin u ed
1.1957-59=100]

F u r n it u r e

1964

1965

1966

98. 5
105. 3
103. 2
99. 4
91. 3
101. 5
102. 8
100. 9
U /)
98. 8
100. 5
104. 1
106. 0

98. 0
106 . 2
103. 7
97. 7
89. 2
101. 7
103. 2
101. 5
( 1 /)
98. 1
100. 9
104. 8
106. 2

99. 1
109. 1
105. 7
97. 0
89. 1
102. 6
103. 9
103. 0
( 1 /)
97. 2
101. 2
106. 8
109. 6

1967

196 4-67

and h o u s e h o ld

H o u s e h o ld fu r n it u r e . . . .
C o m m e r c ia l fu rn itu re. . .
F l o o r c o v e r i n g .......................
H o u s e h o ld a p p lia n c e s . . .
N o n m e t a llic m i n e r a l p r o d u c t s
C o n c r e t e in g r e d ie n t s . . . .
C o n c r e t e p r o d u c t s .............
T r a n s p o r t a t i o n e q u ip m e n t . .
P a s s e n g e r c a r s , new. . . .
R a i l r o a d e q u ip m e n t .............
M iscella n eou s p r o d u cts . . . .
T o b a c c o p r o d u c t s .................

1/

P e r c ent
change

Annual a v e r a g e s

W h o le s a le p r i c e in d e x e s

101.
112.
111.
93.
90.
104.
106.
105.
( 1 /)
98.
103.
109.
112.

0
8
1
7
1
3
0
3
1
3
2
9

2. 5
7. 1
7. 7
-5 . 7
-1 . 3
2. 8
3. 1
4. 4
(1 /)
-0 . 7
2; 8
4. 9
6. 5

Not A v a ila b le .




39

T a b le 7- W h o le s a le P r i c e In d ex es f o r S e le c t e d In d u str ia l C o m m o d i t i e s
Q u a r t e r l y P e r c e n t C h an ges
[Not s e a s o n a l l y a d ju s te d ]
1966
W h o le s a le
p r i c e in ­
dexes

D e c. 1966 M a r c h June
to
to
to
M arch
June Sept.

Sept.
to
D e c.

0. 9

0. 3

0. 3

0. 5

0

0. 5

0. 1

0. 1

0

-0 . 4

0

-0 . 2

0. 4

1. 8

0. 6

1. 0

0. 3

-0 . 4

-1 . 4

-1. 6

-0. 5

5. 0

0. 6

0. 5

-0 . 4

-1 . 2

-0 . 8

-0 . 5

-0 . 5

-1. 2
0. 4

-0 . 9
0. 1

-1. 6
0. 3

-1 . 9
0. 3

0
0.. 6

-1. 3
0. 7

0. 6
0. 7

2. 7
0. 7

0. 1

0. 5

1. 0

0. 2

-0. 2

0. 2

1. 4

2. 8

3. 6

3. 5

-2. 4

-2 . 2

-0 . 3

-1. 1

-1 . 0

1. 4

11. 7
8. 0
1. 4

8. 9
2. 7
3. 0

-1 6 . 6
-3. 8
0. 2

-18. 6
-4. 6
1. 0

-9., 4
-1. 4
1. 2

-3. 1
-3 . 8
-0 . 2

-2. 7
-4. 4
0. 2

-3 . 8
3. 6
2. 1

-0 . 7

1. 6

0. 7

0. 2

1. 3

0. 3

0. 5

-1. 8

0. 1

0. 4

0. 3

0. 4

0. 2

0

0. 7

0

-1 . 2
-1. 8

3. 1
6. 8

0. 8
0. 6

-0. 8
-2 . 5

2. 2
1. 3

0. 7
1. 8

0. 8
0. 6

-3 . 9
-7 . 0

0

0

0. 4

0. 2

0. 3

0

-0. 6

0. 5

-0. 3

0. 6

0

0. 6

0. 6

0. 2

-0 . 1

1. 2

-3. 4

-4. 5

2. 2

-8 . 4

-14. 3

-2. 5

-3 . 0

0. 1

00
•

0. 8

°




Sept.
to
D ec.

•

40

June
to
Sept.

00
o
I

In d u str ia l
com m od ities .
T e x t ile p r o ­
d u cts and
a p p a r e l ..............
C otton
pro­
d u cts . . , • •
W ool
produ cts. .
M an m ad e
fib er p r o ­
ducts i i * «
A pparel . . .
H ousefurnis h in g s . . .
H id e s , s k in s ,
le a t h e r and
produ cts. . .
H id es and
skins . . . .
L e a th e r . . .
F o otw ea r. . .
F u els, p r o ­
d u c t s , and
p o w e r .............
Crude p et­
r o le u m . . .
R e fin e d .p e t­
roleu m p r o ­
d u cts . . . .
G a solin e. .
C h e m i c a l s and
a llie d p r o ­
d u cts .............
In d u str ia l
ch em ica ls .
F a ts and
o i l s ( in e d i­
b l e ) .............

D e c. 1965 M a r c h
to
to
M arch
June

1967

T a b l e 7. W h o le s a le P r i c e In d ex es f o r S e le c t e d In d u str ia l C o m m o d i t i e s —C on tin ued
Q u a r t e r l y P e r c e n t C h an ges
[Not s e a s o n a l l y a d ju s te d ]
1966
W h o le s a le
p r i c e in d e x e s




June
to
Sept.

Sept.
to
D e c.

D e c. I 966 M a r c h June
to
to
to
M arch
June Sept.

Sept.
to
D ec.

0. 3

0. 1

-0. 7

0. 9

2. 7

-0 . 8

-3 . 7

1. o

0. 9

1. 2

-0. 7

0. 3

0. 9

-0. 1

2. 5

1. 0

1. 8

-1. 9

-1 . 8

-0 . 3

-1. 3

-0. 3

0

3. 6

-1. 1

0. 5

1. 1

•
o
1

C h e m i c a l and
a llie d p r o ­
d u cts (c o n t fd)
A g ricu ltu ra l
ch em ica ls
and p r o ­
d u cts . . . .
R u b b e r and
rubber p r o ­
d u cts .............
C rude
rubber . . .
T i r e s and
tubes . . . .
L u m b e r and
w ood products
Lum ber . . .
M illw o r k . . .
P ly w o o d . . .
P u lp , p a p e r
and p r o d u c t s
W ood p u lp . .
C on verted
p a p e r and
paperboard
M etal and
m etal p r o ­
d u cts .............
Ir o n and
steel . . . .
N on ferrou s
m e t a ls . . .
M eta l c o n ­
t a in e r s . . .
P lu m b in g
f ix t u r e s . .
M a c h in e r y and
e q u ip m e n t . .
N o n e le ctrica l
m a ch in ery

D e c , 1965 M a r c h
to
to
M arch
June

1967

5. 0

1.
1.
0.
0.

1
4
8
3

1.1
1. 9
0. 4
-0 . 1

3.
3.
1.
9.

3.
3.
1.
6.

6
7
3
1

2.
4.
1.
-5 .

0
5
2
6

-1.
-2.
0.
-3.

7
2
3
3

-3.
-4 .
-0.
-2.

2
6
5
0

- 2 . 7 *0. 2
0

8 -1. o
7 -0 . 2
0. 5
3
2 -5 . 7

0. 9
-0. 1

1. 2
0

0. 1
0

-0 . 1
0

0. 6
0

0. 3
0

0. 2
0

0. 7
0

1. 2

0. 8

0. 6

0. 2

1. 5

0. 2

-0 . 1

1. o

1. 3

0. 6

—0. 3

0. 6

0. 4

-0 . 5

0. 6

1. 3

0. 6

-0. 3

0. 5

0. 4

0. 4

0

0. 7

0. 7

3. 1

2. 0

-2. 7

0. 5

0. 5

-2. 0

0. 6

3. 6

0

0. 3

0

0. 1

1. 2

0. 2

0

1. 1

0. 8

2. 6

1. 9

-0. 1

0

0. 3

-0 . 5

0. 4

1. 1

1. 1

0. 7

1. 7

0. 7

0. 1

0. 3

1. 2

1. 0

1. 3

0. 9

1. 3

0. 7

0. 3

0. 6

1. 4

41

T a b le 7. W h o l e s a l e P r i c e In d ex es f o r S e le c t e d In d u s tr ia l C o m m o d i t i e s —C on tin u ed
Q u a r t e r l y P e r c e n t C h a n g es
[Not s e a s o n a l l y a d ju s t e d ]
1966

42




June
to
Sept.

Sept.
to
D e c.

1. 4

2. 0

1. 3

1 .1

0. 7

1. 7

0. 6

0. 4

2. 3

0. 7

0. 2

0. 5

0. 2

1. 2

0. 5

1. 6

0. 8

0. 1

1. 2

0

D e c. 1966 M a r c h June
to
to
to
Sept.
M arch
June

Sept.
to
D ec.

00
•
o

M a c h in e r y
and e q u ip ­
m e n t — C on .
M e t a lw o r k in g
E lectrica l
m a c h in e r y .
F u r n it u r e and
h o u s e h o ld
d u ra b le s. . .
H o u s e h o ld
fu r n it u r e . .
C om m ercia l
fu r n itu re . .
F lo o r c o v e r ­
in g .................
H o u s e h o ld
a p p lia n c e s
N o n m e t a llic
m in era l
products . . .
C on crete
in g r e d ie n t s
C on crete
produ cts. .
T r a n s p o r tation
e q u ip m e n t . .
Passenger
ca rs, new .
R a ilroa d
eq u ip m en t.
M iscella n eou s
produ cts. . .
Tobacco
produ cts. .

D e c . 1965 M a r c h
to
to
M arch
June

0. 6

1 .1

-0 . 4

-0. 3

0. 8

0. 2

0. 2

0. 4

0. 9

1. 8

0. 5

0

0. 5

1. 2

0. 7

2. 5

0. 6

2. 4

0. 1

0. 5

-0. 4

-0. 5

1
o
4^

W h o le s a le
p r i c e indexes*

1967

-2 . 5

-0. 7

0. 3

1. 9

0. 3

0. 3

-0 . 8

0. 6

0. 7

0. 2

0. 3

0. 7

0. 5

0. 4

0. 5

0. 3

0. 5

0. 1

0. 8

0. 6

0. 4

-0. 2

0. 3

0. 4

1. 4

0. 1

0. 2

0. 4

0. 4

0. 8

0. 6

0. 3

0. 6

1. 1

0. 2 - 0 . 1

. ••

...

• O•

...

...

...

-0 . 3

-0 . 7

-1. 0

2. 4

-0. 5

-0. 4

0. 2

2. 7

0

0

0

1. 7

0

0. 2

0

1. 8

1. 3

0. 4

0. 2

0. 4

0. 2

1. 8

0. 5

0. 5

3. 6

0. 5

0

0

0

4. 1

0

0

T a b le 8. C o n s u m e r P r i c e In dex es F o r S e le c t e d
In d u str ia l C o m m o d i t i e s , 1 9 6 4 -6 7
[ 1957-59 = 100]
P ercent
ch a n g e

A nnual a v e r a g e s

C o n s u m e r p r i c e in d e x e s
1964

1965

1966

1967

1 9 6 4 -6 7

104. 4

105. 1

106. 5

109. 2

4. 6

D u r a b le c o m m o d i t i e s .............
New c a r s ....................................
U sed c a r s .................................
T i r e s , n e w ..............................
H o u s e h o ld d u r a b l e s .............
A p p l i a n c e s ..........................
T V s e t s .................................
F u r n it u r e and b e d d in g . .
F l o o r c o v e r i n g ............. ...

103.
101.
121.
97.
98.
90.
90.
102.
102.

0
2
6
4
4
0
1
2
7

102.
99.
120.
99.
96.
87.
86.
102.
101.

6
0
8
8
9
1
3
8
6

102.
97.
117.
102.
96.
84.
82.
105.
101.

7
2
8
1
8
4
1
4
9

104.
98.
121.
105.
98.
83.
80.
109.
102.

3
1
5
9
2
8
4
4
1

N o n d u r a b le c o m m o d i t i e s . . .
A p p a r e l l e s s f o o t w e a r J /. .
W o m e n ’ s and g ir ls * . . .
M e n ’ s and b o y s * .................
F o o t w e a r ....................................
T e x t i l e h o u s e f u r n is h in g s .
F u e l o i l and c o a l ....................
F u e l o i l # 2 ..........................
G a s o l i n e ....................................
D rugs & p r e s c r ip tio n s . . .
T o i l e t g o o d s ..........................
T o b a c c o p r o d u c t s .................
A lco h o lic b ev era ges . . . .

105.
103.
102.
106.
111.
102.
103.
101.
102.
98.
102.
114.
104.

7
6
3
1
0
0
5
0
1
4
9
8
7

107.
104.
103.
107.
112.
102.
105.
103.
106.
98.
102.
120.
105.

2
4
1
4
9
7
6
1
0
1
3
2
8

109.
106.
105.
110.
119.
104.
108.
105.
108.
98.
101.
126.
107.

7
3
1
3
6
1
3
8
3
4
2
1
7

113.
110.
109.
114.
125.
107.
111.
109.
111.
97.
102.
130.
109.

1
5
9
3
5
0
6
2
7
9
9
9
9

A ll c o m m o d itie s le s s food .

1.
-3 .
-0.
8.
-0.
-6.
-1 0 .
7.
-0 .

3
1
1
7
2
9
8
0
6

7. 0
6. 7
7. 4
7. 7
13. 1
4. 9
7. 8
8. 1
9 .4
-0. 5
0
14. 0
5. 0

-i^Total includes unlisted items.

tin as w e ll as the w a g e s e t t le m e n t o f
1965 c o n t r ib u t e d to the i n c r e a s e s .
F o llo w in g t h e ir 1966 y e a r end a d ­
vance, p r ic e s fo r steel m ill produ cts
r e m a in e d s ta b le until la te in 1967 as
s t e e l p r o d u c t io n d r o p p e d s te a d ily .
A s p r o d u c t io n p ic k e d up in the th ird
q u a r t e r , a n o th e r rou n d o f i n c r e a s e s




b e g a n and, by the end o f the y e a r ,
p r i c e s o f o v e r t w o - t h i r d s o f a ll s t e e l
p r o d u c t s had b e e n r a i s e d . E x p e c t a ­
tion o f h e a v y in v e n t o r y
b u ild in g in
the f i r s t h a lf o f 1968 as a h e d g e
a g a in s t
a p o ssib le
s t r ik e
on
A u g u s t 1, 1968, w a s u n d o u b te d ly
on e r e a s o n f o r the la t e 1967 i n c r e a s e s .

43

An i n c r e a s e in the a m ou n t of
s t e e l i m p o r t s , w h ich g e n e r a l l y a r e
1 0 to 20 p e r c e n t lo w e r in p r i c e , has
b e e n r e s p o n s i b l e p a r t ly f o r the m o r e
m o d e r a t e p r i c e r i s e in r e c e n t y e a r s
than in the 1950*s. In 1966, i m p o r t s
r e p r e s e n t e d a l m o s t 11 p e r c e n t of
d o m e s t i c c o n s u m p t io n and they a r e
e x p e c t e d to a c c o u n t f o r a l m o s t 12
p e r c e n t in 1967.
N on ferrou s M e ta ls. P r e s s u r e s
on p r i c e s o f n o n f e r r o u s m e t a ls
s ta r t e d e a r l i e r in the r e c e n t e x p a n ­
s io n and w e r e g r e a t e r than f o r m o s t
in d u s t r ia l m a t e r i a l s , in c lu d in g o th e r
m e t a l s . P r o d u c t i o n a p p r o a c h e d fu ll
c a p a c i t y u t iliz a t io n m u c h s o o n e r ,
r e a c h i n g 90 p e r c e n t o f n o n f e r r o u s
r e fin in g c a p a c i t y by D e c e m b e r 1963,
and 98 p e r c e n t a y e a r la t e r . A l ­
though p r i c e s co n tin u e d to r i s e
s u b s ta n t ia lly until m i d - 1966, the
l a r g e s t i n c r e a s e t o o k p l a c e in 1964
w h en n o n f e r r o u s m e t a l p r i c e s
ju m p e d 12 p e r c e n t . P r i c e s f o r
v i r t u a l l y a ll the im p o r t a n t m e t a ls
and m i l l p r o d u c t s i n c r e a s e d —p r i ­
m a r y c o p p e r , a lu m in u m ingot, le a d
z in c , m e r c u r y and tin. The c o r ­
r e s p o n d i n g s c r a p m e t a ls r o s e even
m o r e s h a r p ly .
D urin g m u c h o f this p e r i o d ,
s p e c i a l c i r c u m s t a n c e s su ch as
s t r i k e s in this c o u n t r y and a b r o a d
and p o l i t i c a l p r o b l e m s in s e v e r a l
m a j o r p r o d u c in g c o u n t r ie s c u r t a ile d
s u p p lie s o f n o n f e r r o u s m e t a l s , p a r ­
tic u la r ly co p p e r. B etw een m id 1963 and m i d - 1 9 6 6 , p r i c e s o f p r i ­
m a r y c o p p e r i n c r e a s e d 16 p e r c e n t ,
and c o p p e r s c r a p o v e r 130 p e r c e n t .
S in c e m a n y p r o d u c e r s o f c o p p e r
p r o d u c t s f r e q u e n t ly w e r e f o r c e d to
p u r c h a s e the m e t a l in the h i g h e r p rice d s cra p or d e a le r s 1 m arkets,
p r ic e s of m ill p rodu cts in cre a se d
m u c h m o r e than p r i m a r y c o p p e r .
D u rin g th e s e 3 y e a r s , p r i c e s o f c o p ­
p e r tubing r o s e o n e - t h i r d , and
w i r e and c a b l e p r i c e s o n e - fo u r t h .
The s e c o n d h a lf o f 1966 and the
f i r s t h a lf o f 1967 w i t n e s s e d a g e n e r a l
44



s o ft e n in g o f n o n f e r r o u s m e t a ls p r i c e s as
d i f f i c u l t i e s w h ic h had p r e v i o u s l y c u r ­
ta ile d s u p p lie s w e r e s e ttle d and d em an d
f r o m the auto, a p p lia n c e , and c o n ­
s t r u c t io n i n d u s t r ie s w e a k e n e d . A f t e r
m id -1 9 6 7 , h ow ever, co p p e r p r ic e s
b e g a n to r i s e as a lo n g s t r ik e in the
U. S. c o p p e r - m i n i n g in d u s t r y cut b a c k
s u p p lie s . O n c e m o r e , c o p p e r f a b r i ­
c a t o r s w e r e f o r c e d to turn to the
h ig h e r p r i c e d d e a le r s * and s c r a p m a r ­
k ets in this c o u n t r y and a b r o a d .
M a c h i n e r y . A lth o u g h m a c h i n e r y and
e q u ip m e n t p rice; i n c r e a s e s b e g a n to
a c c e l e r a t e in 1964, the l a r g e s t a d v a n c e
c a m e in 1966 w hen both d em a n d and
c o s t p r e s s u r e s in t e n s ifie d . In d u s t r ia l
output o f e q u ip m en t, in c lu d in g d e f e n s e
eq u ip m en t, r o s e 17 p e r c e n t in 1966,
c o m p a r e d w ith an 11 p e r c e n t r i s e in
1965 and 6 p e r c e n t in 1964. F o r the
f i r s t t im e in m a n y y e a r s , the e l e c t r i c a l
as w e l l as n o n e l e c t r i c a l m a c h i n e r y
in d u s t r ie s w e r e o p e r a t in g at th e ir
p r e f e r r e d r a t e s , and o r d e r b a c k l o g s
g r e w . S h o r t a g e s o f s k ille d w o r k e r s
added to c o s t p r e s s u r e s , p a r t i c u l a r l y
in m a c h in e t o o l p r o d u c t io n .
W h o le s a le p r i c e s o f m a c h i n e r y and
equ ip m en t, w h ic h had r i s e n m o d e r a t e ly
in 1964 and 1965, ju m p e d a l m o s t 5
p e r c e n t in 1966 as e l e c t r i c a l m a c h i n e r y
p r i c e s r e v e r s e d t h e ir l o n g - t e r m d o w n ­
tren d and p r i c e i n c r e a s e s f o r n o n ­
e le c tric a l m a ch in ery a cce le ra te d .
E l e c t r i c a l m a c h i n e r y p r i c e s had d e ­
c r e a s e d s t e a d ily b e t w e e n 1959 and
1964, r e f l e c t i n g e x c e s s p r o d u c t i v e
c a p a c i t y as w e l l as p r o d u c t i v i t y ga in s.
A f t e r s t a b iliz in g in 1965, . e l e c t r i c a l
m a c h i n e r y p r i c e s r o s e s h a r p ly in 1966.
The l a r g e s t i n c r e a s e o c c u r r e d in the
fo u r th q u a r t e r f o l l o w i n g an in d u s t r y ­
w id e w a g e s e tt le m e n t .
When c a p it a l ou tla y s b y b u s in e s s
s lo w e d in the f i r s t h a lf o f 1967, p r i c e
advances fo r n o n e le c tr ica l m a ch in ery
a l s o s la c k e n e d and e l e c t r i c a l m a c h i n ­
e r y p r i c e s ed ged d ow n s lig h tly . A f t e r
m id -y e a r, how ever, e le ctrica l m a ­
c h i n e r y p r i c e s held s te a d y ; p r i c e s f o r
m o st n o n e le c tr ica l m a ch in ery,

p a r t i c u l a r l y m e t a lw o r k in g m a c h i n e r y , the s a m e t im e , the unusual f a c t o r s
w h ich c a u s e d the b o o m in g lu m b e r p r i c e s
r o s e again.
L a te in the y e a r , a ll
e a r l i e r in the y e a r w e r e e lim in a t e d ,
m a c h i n e r y p r i c e s r o s e s u b s ta n tia lly .
and lu m b e r b u y e r s s h ow ed g r o w in g r e ­
Both d em a n d and c o s t p r e s s u r e s
s i s t a n c e to the in fla ted p r i c e s . A t the
a r e e x p e c t e d to c a u s e p r i c e s o f m a ­
end o f the y e a r , l u m b e r and w o o d
c h i n e r y to c o n tin u e u p w ard in 1968.
p r i c e s w e r e on ly 0. 6 p e r c e n t h ig h e r
A lth o u g h s till f a r b e lo w 1966*s i n ­
than t h e ir D e c e m b e r 1965 l e v e l s , and
c r e a s e of 1 6 - 1 / 2 p e r c e n t , new plant
3 p e r c e n t a b o v e D e c e m b e r 1964 p r i c e s .
and e q u ip m e n t e x p e n d it u r e s a r e e x ­
p e c t e d to r i s e m o r e in 1968 than
L u m b e r and w o o d p r i c e s b eg a n
a n o th e r u p w ard m o v e m e n t in 1967, r e ­
th ey did in 1967. On the c o s t s id e ,
f l e c t i n g the r e v i v a l o f h o u s in g c o n ­
b oth w a g e i n c r e a s e and t h o s e f o r
s t r u c t io n in the s p r in g and tightenin g
m a t e r i a l s a r e e x p e c t e d to be s u b ­
sta n tial.
lu m b e r s u p p lie s in the s u m m e r due to
d r o u g h t c o n d it io n s and f o r e s t f i r e s in
L u m b e r and W o o d P r o d u c t s ,
the N o r th w e s t.
F r o m D e c e m b e r 1966
P r i c e t r e n d s f o r lu m b e r and w o o d
to S e p t e m b e r 1967, p r i c e s o f l u m b e r
p r o d u c t s in the 1 9 6 0 's c l o s e l y
and w o o d p r o d u c t s r o s e 6 p e r c e n t p a r a l l e l e d h o u s in g c o n s t r u c t i o n
m o r e than t r i p l e the u s u a l s e a s o n a l
a c t iv it y , although the p r i c e u p s u r g e
am ount. H o w e v e r , the u su al s e a s o n a l
d u r in g the f i r s t 5 m on th s o f 1966 —
d e c l i n e la te in the y e a r c a u s e d 1967
as w e l l as t h e ir p r e c i p i t o u s plunge
p r i c e s to a v e r a g e c l o s e to th e ir 1966
b y the end o f that y e a r —w a s due
le v e l.
l a r g e l y to a c o m b in a t io n o f u n u su al
H id e s , Leather^ and F o o t w e a r . The
circu m sta n ces.
s h a r p flu c tu a t io n s in p r i c e s o f h id e s
F o llo w in g the I960 d e c l i n e in
p r i v a t e h o u s in g s t a r t s , p r i c e s o f
and le a t h e r s i n c e 1964 w e r e c a u s e d
l u m b e r and w o o d p r o d u c t s f e l l in
p r i m a r i l y by c h a n g e s in e x p o r t d e ­
1961, r e a c h in g the l o w e s t l e v e l
m and.
When A r g e n t in e c a t t le h e r d s —
a m a j o r s o u r c e o f le a t h e r f o r the
s in c e the K o r e a n c o n f l i c t .
As
h o u s in g a c t i v i t y b e g a n to expand in
E u r o p e a n and o th e r w o r l d m a r k e t s —
the e a r l y 1 9 6 0 !s w ith the added in ­
w e r e r e d u c e d d r a s t i c a l l y in 1964 b e ­
c e n t iv e o f f a v o r a b l e m o r t g a g e
c a u s e o f d rou g h t, o v e r s e a s dem and
i n t e r e s t r a t e s , l u m b e r and w o o d
sh ifted to the United States. T h is
p r i c e s r o s e an a v e r a g e o f 1 - 1 / 2
s h a r p r i s e in our e x p o r t s at a t im e
p e r c e n t a n n u ally b e t w e e n 1 961 and
o f exp an d in g d o m e s t i c need c a u s e d
1965. D u rin g the f i r s t 5 m on th s
p r i c e s to turn u p w a rd in the la tte r
o f 1966, h o w e v e r , a c o m b in a t io n
p a r t o f 1964, and to c l i m b s t e e p ly
of sp ecia l cir cu m s ta n c e s reduced
w hen m i l i t a r y n e e d s w e r e ad d ed in
l u m b e r s u p p lie s s e v e r e l y and c a u s e d
1965. At the r e q u e s t o f U. S. sh o e
p r i c e s to s p u rt u p w ard.
These
and le a t h e r m a n u f a c t u r e r s , e x p o r t
f a c t o r s in c lu d e d i n c r e a s e d m i l i t a r y
quotas w e r e p l a c e d on h id e s in M a r c h
p rocu rem en t, a tem p ora ry cu rta il­
o f 1966.
m en t o f lo g s u p p lie s , h e d g e - b u y in g
F r o m the end o f 1964 to m i d - 1966,
a g a in s t a p o s s i b l e W e s t C o a s t s tr ik e
h id e s and skin p r i c e s r o s e a l m o s t 80
by l u m b e r m e n at m i d - y e a r , and a
p e r c e n t and le a t h e r 22 p e r c e n t . H o w ­
s h o r t a g e o f r a i l w a y c a r s to s u p p ly
e v e r , as the A r g e n t in e c a t t le h e r d s
the n e e d e d t r a n s p o r t a t io n .
w e r e r e b u ilt , A r g e n t in e h id e s r e e n ­
P r i c e s o f lu m b e r and w o o d p r o ­
t e r e d w o r l d m a r k e t s and e x p o r t s f r o m
d u cts d e c lin e d s h a r p ly in the s e c o n d
this c o u n t r y d w in dled . D o m e s t i c
h a lf o f 1966 as tight m o n e y and
p r i c e s o f h id e s and le a t h e r f e l l s h a r p ly
r isin g m o rtg a g e in terest rates d e ­
a ft e r m i d - 1966, and e x p o r t qu otas
p r e s s e d h o u s in g c o n s t r u c t io n . At
w e r e r e m o v e d in N o v e m b e r .




45

A lth ou g h the p r i c e i n c r e a s e s w h ich
b e g a n in la te 1964 f o r f o o t w e a r w e r e
t r i g g e r e d by s o a r i n g le a t h e r p r i c e s ,
th e y con tin u ed high a ft e r le a t h e r
p r i c e s beg a n to fa ll. H ig h e r s h oe
p r i c e s at the w h o l e s a l e l e v e l w e r e
a ttrib u te d to r i s i n g la b o r and oth er
p r o d u c t i o n c o s t s as w e ll as to p r i c e
i n c r e a s e s f o r n o n le a th e r c o m p o n e n t s
s u c h as r u b b e r h e e l s .
S in ce m i d 1966, the a d v a n c e s in r e t a i l p r i c e s
h a v e b e e n s u b s ta n t ia lly l a r g e r than
at w h o l e s a l e due to h ig h e r r e t a i l
m a r k u p s and to r i s i n g r e t a ilin g c o s t s .
In g e n e r a l, c o n s u m e r r e s i s t a n c e
has b e e n s lig h t and, in 1967, sh o e
p r i c e s a v e r a g e d about 13 p e r c e n t
h ig h e r than in 1964. (See ta b le 8.)
T e x t i l e s and A p p a r e l . E x c e p t
f o r s y n t h e t ic s , p r i c e s o f f a b r i c s
m o v e d up a l m o s t a c r o s s the b o a r d
in 1965, and co n tin u e d to r i s e
th r o u g h the f i r s t h a lf o f 1966.
W ool
p r i c e s i n c r e a s e d as a r e s u l t o f
w o r l d - w i d e s h o r t a g e s c a u s e d by
d r o u g h t s in A u s t r a l i a and South
A f r i c a in 1 965.
A c o m b in a t io n o f f a c t o r s c a u s e d
p r i c e s o f a l m o s t a ll t e x t ile m a t e ­
r i a l s to d e c r e a s e a ft e r m i d - 1966
and to c o n tin u e dow n until la te in
1967 w h en the a b n o r m a l l y s h o r t 1967
cotton c r o p cau sed a sharp p r ic e
rise.
T h e e c o n o m i c s lo w d o w n in
this c o u n t r y , tight m o n e y both h e r e
and a b r o a d , and a u s t e r it y m e a s u r e s
a d o p te d by the United K in gd om
h e lp e d to d e p r e s s p r i c e s in late
1966 and th rou g h m o s t o f 1967. In
a d d itio n , w o r l d s u p p lie s o f w o o l
i n c r e a s e d ; a c h a n g e in m e th o d of
p a y in g s u b s id ie s un d er the " o n e
p r i c e c o t t o n ” l e g i s l a t i o n r e s u lt e d
in a 25 p e r c e n t d r o p in p r i c e s o f
ra w c o tto n ; and c on tin u ed e x c e s s
p r o d u c t i o n c a p a c i t y —as w e l l as
g r o w in g c o m p e t i t i o n due to l o w e r
p r i c e s f o r o t h e r f a b r i c s —c a u s e d s y n ­
th etic f a b r i c p r i c e s to fa ll s h a r p ly .
In c o n t r a s t , p r i c e s o f t e x t ile
p r o d u c t s , p a r t i c u l a r l y at the r e t a i l
46



l e v e l , r o s e s h a r p ly a f t e r m i d - 1966.
Unlike e x p e n d it u r e s f o r fo o d and
s h e lt e r , s p e n d in g f o r c lo t h in g and
h o u s e h o ld s u p p lie s i n c r e a s e as i n c o m e
r i s e s . T h is g r o w t h in c i v i l i a n d em an d ,
on top o f r i s i n g m i l i t a r y n e e d s , p u sh ed
p r i c e s of a p p a r e l and t e x t ile h o u s e f u r n is h in g s u p w ard. In ad d ition ,
m a n y p r o d u c t io n c o s t s —p a r t i c u l a r l y
l a b o r — i n c r e a s e d due to h ig h e r w a g e
r a t e s and the d e c lin in g su p p ly o f
t r a in e d and e x p e r i e n c e d w o r k e r s .
R e t a il s t o r e s a p p a r e n t ly h a v e b e e n
s u b je c t to e s p e c i a l l y l a r g e u p w a rd
l a b o r c o s t p r e s s u r e s w h ic h h a v e not
b e e n b a la n c e d by p r o d u c t i v i t y ga in s.
In a d d ition , r e t a i l e r s h a v e a tte m p te d
to w id e n p r o f i t m a r g i n s . In c o n s e ­
q u e n c e , the r i s e in r e t a i l p r i c e s o f
a p p a r e l in the y e a r ending in D e c e m ­
b e r 1967 w a s o v e r 4 p e r c e n t , t w ic e
as m u c h as the w h o l e s a l e i n c r e a s e .
A u t o m o b i l e s . N ew c a r p r i c e s , as
m e a s u r e d by the BLS p r i c e in d e x e s w h ic h
a d ju s t p r i c e s to a llo w f o r i m p r o v e m e n t s
on f a c t o r y - e q u i p p e d c a r s , d e c l i n e d e a c h
y e a r b e t w e e n 1959 and 1966. H o w e v e r ,
p r i c e s b e g a n to r i s e in m i d - 1967 and
i n c r e a s e d c o n s i d e r a b l y w hen 1968
m o d e l c a r s w e r e in t r o d u c e d in the fa ll.
B e t w e e n 1961 and 1965, a u t o m o b ile
s a l e s r o s e s t e a d ily as i n c o m e i n c r e a s ­
ed, fin a n c in g r e m a in e d e a s y , the
p o p u la tio n of d r iv in g a g e g r e w , and
the t w o - c a r f a m i l y b e c a m e c o m m o n .
In a d d ition , a s h a r p i n c r e a s e in the
v a lu e o f u s e d c a r s r a i s e d t r a d e - i n
a l l o w a n c e s and r e d u c e d net c o s t s o f a
new c a r to the a v e r a g e b u y e r .
In
1965, a r e c o r d 9. 3 m i l l i o n c a r s w e r e
s o ld , and s p en d in g on a u t o m o b ile s and
parts rea ch ed o v er 7 -1 /2 p e rce n t of
p e r s o n a l c o n s u m p t io n e x p e n d it u r e s —
c o m p a r e d w ith 5 - 1 / 2 p e r c e n t in 1961.
A c o m b in a t io n o f f a c t o r s c a u s e d
s a le s to fa ll in 1966 —c r e d i t w a s d i f f i ­
cu lt to obtain, c o s t s o f fin a n c in g w e r e
h ig h e r , t r a d e - i n a l l o w a n c e s f o r u s e d
c a r s d e c lin e d , and the p r o b l e m s o f
auto s a fe t y w e r e p u b lic iz e d .
The d e ­
c l i n e in s a l e s co n tin u e d in e a r l y 1967,

5 p e r c e n t in 1966, and a su b s ta n tia l
i n c r e a s e w a s e x p e c t e d f o r 1967 even
b e f o r e the M id e a s t c r i s i s d e v e lo p e d .
D e fe n s e r e q u i r e m e n t s f o r a ll o i l p r o ­
d u cts ju m p e d s h a r p ly in 1966 and
a g a in in 1967, r e a c h i n g abou t 350
m i l l i o n b a r r e l s annually.
H ow ever,
d em an d has ex p an d ed at d i f f e r e n t r a t e s
f o r e a c h o f the m a j o r p e t r o l e u m c a t e ­
g ories.
J et f u e l —b e c a u s e o f the i n ­
t r o d u c t io n o f c o m m e r c i a l j e t s and the
d e m a n d s o f the w a r in V iet N am —
has show n the l a r g e s t a d v a n c e .
The r i s e in d em a n d f o r p e t r o l e u m
p r o d u c t s has b e e n w o r l d w i d e , but
w o r l d s u p p lie s o f c r u d e o il h a v e m o r e
than kept p a c e w ith i n c r e a s e d r e q u i r e ­
m e n t s . P o t e n t ia l s u p p lie s a r e l a r g e
and p r o d u c t io n is c o n t r o l l e d in the
m a j o r o i l - p r o d u c i n g States, thus
h elp in g to m a in ta in p r i c e l e v e l s . A l s o
i m p o r t qu ota s k e e p f o r e i g n o il f r o m
f lo o d in g U. S. m a r k e t s and d r iv in g
p r i c e s down. J u s t p r i o r to the M id ­
e a s t c r i s i s in June 1967, c r u d e o il
i n v e n t o r i e s in this c o u n t r y and in
E u r o p e w e r e at high l e v e l s ; th ey had
r e a c h e d a 3 - y e a r p e a k in the United
States.
R e c e n t p r i c e t r e n d s should b e
v ie w e d in t e r m s not on ly o f c u r r e n t
c o n d it io n s but a l s o in ligh t o f the p r i c e
im p a c t w h ic h r e s u l t e d f r o m the Suez
c r i s i s o f 1956. In the 3 m on th s
f o l l o w i n g that c r i s i s , w h o l e s a l e p r i c e s
o f c r u d e o il and r e fin e d p e t r o l e u m
O i l and P e t r o l e u m P r o d u c t s , P e t r o ­ p r o d u c t s r o s e 11 p e r c e n t and U. S.
le u m is s t i l l the l a r g e s t s in g le s o u r c e e x p o r t s c l i m b e d s t e e p ly . A s an a f t e r o f e n e r g y u s e d in this c o u n t r y , d e s p it e m ath, the p e t r o l e u m in d u s t r y s u f f e r e d
g r o w in g c o m p e t i t i o n f r o m n a tu ra l ga s f r o m the e f f e c t s o f an o v e r s u p p l y , and
and a t o m i c e n e r g y , and d e m a n d has ex­ w h o l e s a l e p r i c e s m o v e d g e n e r a l l y
panded c o n s i d e r a b l y in r e c e n t y e a r s .
d ow n w a rd f r o m m i d - 1957 th rou g h
Total d o m e stic dem and fo r p e t r o le ­
1964. In c o n t r a s t , r e t a i l p r i c e s h eld
um r o s e 4 p e r c e n t in 1965, a n o th e r
s te a d y o r i n c r e a s e d .
In 1964, they
but new c a r s a l e s s tr e n g th e n e d in
the s p r in g and co n tin u e d u pw ard.
P r i c e s o f 1968
m odel ca rs in tro­
d u c e d in the f a l l o f 1967 w e r e 2
p e r c e n t h ig h e r than c o m p a r a b l e
1967 m o d e l s , ev e n a ft e r a d ju s t m e n t
f o r q u a lity i m p r o v e m e n t .
H ig h e r 1967 r e t a i l p r i c e s r e ­
su lte d not o n ly f r o m s t r o n g c o n ­
s u m e r d e m a n d and s o m e w h a t h ig h e r
w h o l e s a l e c o s t s but a l s o f r o m a
c o m b in a t io n o f s p e c i a l c i r c u m ­
s t a n c e s . New c a r i n v e n t o r i e s w e r e
r e l a t i v e l y low b e c a u s e the p ic k u p
in s a le s o c c u r r e d to o la te to i n ­
c r e a s e p r o d u c t i o n o f 1967 m o d e l s .
In ad d ition , f e a r s o f a s t r ik e and the
s t r i k e fs s u b s e q u e n t d e v e lo p m e n t
c r e a t e d f i r s t an a n t ic ip a t e d and then
a r e a l s h o r t a g e o f s o m e 1968 m o d e l s .
M o r e o v e r , e x p e c t a t io n s o f h ig h e r
p r i c e s f o r 1968 m o d e l s c a u s e d 1967
m o d e l p r i c e s to r e m a i n s tr o n g .
A t the m a n u fa c t u r in g l e v e l , h ig h e r
c o s t s o f l a b o r , m a t e r i a l s , and a d d i­
t io n a l s a fe t y e q u ip m e n t w e r e a m o n g
the c h i e f r e a s o n s f o r the r i s e in
p r i c e s o f 1968
m od els.
The i m ­
p a c t o f w a g e s e t t le m e n t s n e g o tia te d
in 1967 is not e x p e c t e d to be c o m ­
p l e t e l y o f f s e t by p r o d u c t i v i t y ga in s.
T h e s e f a c t o r s and r i s i n g m a t e r i a l s
c o s t s a r e e x p e c t e d to c a u s e new c a r
p r i c e s to c o n tin u e to i n c r e a s e at
both the w h o l e s a l e and r e t a i l l e v e l s .

2®/ D e ta ile d a c c o u n t s ca n b e found in " S u m m e r 1967 - O il and the M id d le
E a st, ff B u s i n e s s R e v i e w , O c t o b e r 1967, F e d e r a l R e s e r v e B ank o f D a lla s
and in " O i l on T r o u b l e W a t e r s , " M onthly R e v i e w , O c t o b e r 1967, F e d e r a l
R e s e r v e Bank o f San F r a n c i s c o .




47

a v e r a g e d 1 p e r c e n t h ig h e r than t h e ir
1 9 5 7 - 5 9 a v e r a g e f o r fu e l o il, 2 p e r ­
c e n t h ig h e r f o r g a s o lin e , and 16
p e r c e n t h ig h e r f o r m o t o r oil.
T h e b o o m in g e c o n o m y and i n ­
c r e a s e d m i l i t a r y n e e d s as w e l l as
the co n tin u e d l im it a t io n s on o il p r o ­
d u c tio n and i m p o r t s s e r v e d to r a i s e
w h o le sa le p r ic e s o f p etroleu m p r o ­
d u cts s u b s ta n t ia lly in 1965 and 1966
and to k e e p them m o v in g u p w ard in
1967. C r u d e o il p r i c e s tu rn ed up
l a t e r and r o s e m o d e r a t e ly .
In 1967,
w h o l e s a l e p r i c e s o f r e fin e d p e t r o ­
le u m p r o d u c t s a v e r a g e d 10 p e r c e n t
h ig h e r than in 1964 and c r u d e p e ­
troleu m p r ic e s 2 p ercen t.
R e t a il
p r ic e in c r e a s e s fo r va riou s p r o ­
d u c ts o v e r the 3 y e a r s r a n g e d
f r o m a l m o s t 8 to o v e r 9 p e r c e n t .
T h e p r i c e im p a c t o f the 1967
M id e a s t c r i s i s and the c l o s i n g o f
the Suez C anal w a s m o d e r a t e and,
in g e n e r a l, t e m p o r a r y . O il e m ­
b a r g o e s o f the A r a b c o u n t r i e s w e r e
o f s h o r t d u r a t io n and, d u r in g that
p e r i o d , p r o d u c t i o n a llo w a n c e s w e r e
i n c r e a s e d in the o i l - p r o d u c i n g States
in o r d e r to su p p ly d o m e s t i c and
in t e r n a t io n a l d em a n d .
S h arp ly
h ig h e r r a t e s f o r c h a r t e r i n g o il

48



ta n k e r s c a u s e d t r a n s p o r t a t io n c o s t s to
i n c r e a s e , but this on ly a f f e c t e d a s m a l l
p r o p o r t i o n o f the o il o r the r e fin e d
p r o d u c t s u s e d in this co u n tr y .
N o ta b le p r i c e d e v e lo p m e n t s in 1967 —
the sh a r p r i s e in w h o l e s a l e p r i c e s o f
ligh t and m i d d le d i s t i l l a t e s and the
l a t e - y e a r d r o p in w h o l e s a l e g a s o lin e
p r i c e s r e s u lt e d f r o m sh ifts in p r o ­
d u ction . O il c o m p a n i e s had lim it e d
d o m e s t i c r e f i n e r y output o f m id d le
d i s t i l l a t e s u s e d f o r h e a tin g fu e l and
su b stitu ted p r o d u c t io n o f the m o r e
p r o f i t a b l e g a s o lin e . A l s o , l a r g e d e ­
m a n d s f o r j e t fu e l c a u s e d m a j o r r e ­
f i n e r i e s to sh ift p r o d u c t i o n to m e e t
t h e s e n e e d s and fu r t h e r c u r t a ile d s u p ­
p l i e s o f fu e l oil. S om e m i d d le d i s t i l l a t e s
u s e d as h eatin g fu e l had to be i m p o r t e d to
m e e t d o m e s t i c r e q u i r e m e n t s and h ig h e r
tan k er c o s t s w e r e one o f the c a u s e s o f
the p r i c e i n c r e a s e s w h ic h con tin u ed
th rou gh ou t m o s t o f 1 967 f o r m i d d le d i s ­
t illa t e s and h eatin g fu el. In c o n t r a s t ,
the buildup o f g a s o lin e i n v e n t o r i e s at
a t im e of s la c k e n in g d e m a n d b r o u g h t
a s h a r p d e c l i n e in w h o l e s a l e p r i c e s
f o r g a s o l i n e la te in the y e a r . R e t a il
g a s o l i n e p r i c e s , w h ic h r e f l e c t in ­
c r e a s e s in State t a x e s as w e l l as r i s i n g
r e t a i l i n g c o s t s , c on tin u ed s tr o n g .




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••••••••

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MM

MM

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MM

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-

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.
: : : : : : : : : : : : : : : : : ...................................................................................................
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: : : : : : : : : : : : :
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: : : : : : : : : : : : :
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Table A -l. Consumer Price Indexes, by Major Groups, 1954-66
(1 9 57 -5 9 = 100)

Year and month

Relative importance1 ...........

A ll
items

100.00

A ll
items
less
food
77.17

Health and recreation
Food

22.83

Housing

3 2.98

Apparel
and
upkeep

Transpor­
tation

10.50

13.80

A ll

19.51

Medical
care

5 .8 0

Personal
care

2 .7 0

Reading
and
recreation

Other

5 .8 7

5 .1 4

Annual averages
9 3 .6

9 2 .8
93.1
9 4 .7

1963.............................................
1964.............................................

9 3.3
9 4.7
9 8.0
100.7
101.5
103.1 ,
104.2
105.4
106.7
108.1

1965.............................................
1966.............................................

109.9
113.1

1954.............................................
1955.............................................
1956.............................................
1957.............................................
1958......... ...................................
1 9 5 9 ............................................
I9 6 0 .............................................
1961.............................................
1962....................................
-

9 7 .9
100.1
102.0
103.7
104.8
106.1
1 07.4
108.9
110.4
113-0

9 5.4
9 4.0
9 4.7
9 7.8
101.9
100.3
101.4
102.6
103.6
105.1
106.4
108.8
114.2

9 3 .4
94.1
95.5
9 8.5
100.2
101.3
103.1
103.9
104.8
106.0
107.2
108.5
111. 1

9 6.3
9 5 .9
9 7.8
99.5
9 9.8
100.6
102.2
103.0
103.6
104.8
105.7
106.8
109.6

9 0.8
8 9.7
9 1.3
96.5
9 9.7
103.8
103.8
105.0
107.2
107.8
109.3
111.1
112.7

9 0.7
9 1.4
9 3 .6
9 7.0
100.3
102.8
105.4
107.3
109.4
111.4
113.6
115.6
119.0

8 6 .6
8 8 .6
9 1 .8

111.3
114.2
117.0
119.4

8 8.5
9 0 .0
9 3 .7
97.1
100.4
102.4
104.1
104.6
106.5
107.9
109.2.

122.3
127.7

109.9
112.2

2 .3
3 .6
4 .0
4 .8

1 .7
4.1
3 .6
3 .4
2 .0
1 .7
.5
1 .8

95.5
100.1
104.4
108.1

9 2 .4
92.1
9 3.4

9 4.3
9 4.3
9 5 .8

9 6 .9
100.8
102.4

9 8.5
9 9.8
101.8
103.8
104.6

1 04.9
107.2
109.6
111.5
114.1
115.2
117.1

105.3
107.1
108.8
111.4
114.9

Percent change in annual averages
1954-55......................................
1955-56......................................
1956-57......................................
1957-58......................................
1958-59.................... .................
1959-60......................................
1960-61 ......................................
1961-62 ......................................
1962-63 ......................................
1963-64......................................
1964-65 ......................................
1965-66......................................

-0 .3
1.5
3 .5
2 .8
.8
1 .6
1.1
1.2
1.2
1.3
1 .7
2 .9

0 .3
1.7
3 .4
2 .2
1 .9
1 .7
1.1
1 .2
1 .2
1 .4
1 .4
2 .4

-1 .5
.7
3 .3
4 .2
-1 .6
1.1
1 .2
1 .0
1 .4
1.2
2 .3
5 .0

0 .7
1.5
3.1
1 .7
1.1
1 .8
.8
.9
1.1
1.1
1 .2
2 .4

-0 .4
2 .0
1.7

-1 .2
1 .8
5 .7

.3
.8
1 .6
.8
.6
1.2

3 .3
4.1
0
1.2
2.1
.6
1 .4
1 .6
1.4

.9
1 .0
2 .6

0 .8
2 .4
3 .6
3 .4
2 .5
2 .5
1 .8
2 .0
1 .8
2 .0
1 .8
2 .9

4 .3
3 .5
3 .0
2 .6
2 .5
2.1
2 .4
4 .4

1.3
1 .2
.6
2 .1

120.6
121.0
121.4
121.6
121.8
122.2
122.7
122.8
122.8
123.0
123.4
123.7

110.1
110.4
110.7
111.0
111.0
108.7
109.0
109.2
109.2
109.6
110.0

-0 .3
1 .4
3 .7
4 .0
1 .6
2 .4
2 .2
2 .2
1 .7
2 .3
1 .0
1.6

0
1 .6
2 .8
1.3
2 .0
2 .0
.8
.7
1 .7
1 .6
2 .4
3 .1

Monthly indexes

1965:
J anuary..................................
F e b ru ary ...............................
March......................................
A p r il.......................................
May...........................................
June........................................
J u ly ........................................
August............................. ..
September.............................
O cto b er..................................
November................................
December................................

108.9
108.9
109.0
109.3
109.6
110.1
110.2
110.0
110- 2
110.4
110.6
111.0

109.8
109.8

106.6
106.6

109.9
110.1

106.9
107.3
107.9
110.1

108.1
108.2
108.2
108.2
108.2
108.2

110.9
111.2
111.3

110.9
110.1
109.7
109.7
109.7
110.6

108.3
108.2
108.6
109.0
109.2
109.4

111.1
111.3
111.6
112.2
112.5
112.8
113.2
1,13.4
113.8
114.4
114.8
114.9

111.4
113.1
113.9
114.0
113.5
113.9
114.3
115.8
1 15.6
115.6
114.8
114.8

109.2
109.4
109.6

110.3
110.3
110.2
110.2
110.6

105.6
105.8
106.0
106.3
106.8
106.9
106.1
106.4
107.2
107.8
108.1
108.1

111.1
110.6
110.6
111.0
111.4
111.2
111.5
111.0
111.0
111.2
111.5
111.6

114.5
114.7
1 14.9
115.4
115.6
115.7
115.3
115.6
115.8
116.2
116.4
116.6

110.0

115.0
115.2
115.4
115.9
115.9
115.7
114.6
114.3
114.8
115.2
115.4
115.4

109.3
109.4
109.5
110.3
1 10.6
111.0
111.5
112.6
112.7
113.3
113.3
113-4

1966:
January ..................................
Fe bruary ...............................
March......................................
A pril........................................
May..........................................
June........................................
J u ly ........................................
August....................................
September.............................
O ctober..................................
November...............................
December...........................

111.0
111.6
112.0
112.5
112.6
1 12.9
113.3
113.8
114.1
114.5
114.6
114.7

110.3
110.7
111.1
111.3
111.5
111.8
112.2
112.6
113.0

107.3
107.6
108.2
108.7
109.3
109.4
109.2
109.2
110.7
111.5
112.0
112.3

111.2
111.1
111.4
112.0
112.0
112.2
113.5
113.5
113.3
114.3
114.5
113.8

1 16.9
117.1
117.6
118.1
118.4
118.7
119.1
119.5
1 19.9
120.4
120.8
121.0

124.2
124.5
125.3
125.8
126.3
127.0
127.7
128.4
129.4
130.4
131.3
131.9

110.4
110.8
111.0
111.6
112.0
112.2
112.5
112.7
113.0
113.3
113-4
113.7

115.7
115.9
116.6
116.8
116.8
117.0
117.2
117.4
117.5
118.0
118.3
118.4

113.4
113.6
1 13.8
114.3
114.7
114 .9
115.3
115.5
1 15.7
1 15.9
116.0
115.9

|See footnotes at end of table 6.




51

Table A-2. Consumer Price Indexes for Food, 1954-66
(1957-59=100)
Food ;at home

Year and month

Food
away
from
home

4. 62

Relative importance1 ...........

Meats
A ll2
A ll2

18. 21

4. 90

Beef
and
veal
2.25

Cereals and bakery
products

Dairy products

Pork

A ll2

1.62

2.75

Milk,
grocery

0 .8 3

Fruits
and
vegetables

2 .96

Eggs
A ll2

2. 45

Bread

0. 60

0 .6 8

Annual averages

1954.............................................
1955.............................................
1956.............................................
1957.............................................
1958......... ...................................
1959.............................................
1960.............................................
1961.............................................
1962.............................................
1963.............................................
1964.............................................
1965.............................................
1966.............................................

9 0 .9
9 1.8
9 3 .6
9 7.1
100.0
102.8
105.5
107.8
110.7
113.2
115.2
117.8
123.2

9 6 .3
9 4 .4
9 4 .8
9 7 .9
102.2
9 9.7
100.6
101. 5
102.2
103.5
104. 7
107. 2
112.6

9 5 .3
8 7.7
8 4 .8
94. 2
104. 9
101.0
9 9 .2
100. 5
102. 5
100.9
9 9 .4
106.9
116.8

8 5 .3
8 4 .4

105.7
9 1 .0

83.1
89. 2
103 . 8
106.9
104. 2
102. 5
106. 2
105.0

8 6 .4
9 9.5
106.1

101.9
106.8
112.4

9 4 .4
9 3 .8
9 8.2
9 9.1
9 6 .6
9 6.1
109.4
125.1

93-7
9 3.6
9 6 .0
9 8 .8

92. 1

100.3
101.0

100. 3
101. 3
103.7
104. 0

103. 2
104. 8
104. 1
103. 8
104. 7
105.0
111.8

9 2 .3
95. 1
9 8 .4

9 0 .5
9 1 .8
9 6.3
9 6 .0
102.8
101.2

103.5
103.0

103. 8
104. 2
105.0
111 .0

103.3
102.8
109.4

115.3
115.2
117.6

9 1.9
9 3-4
9 4 .7
9 8 .4
100.4
101. 2
103. 2
105.4
107.6
109. 1
109.6
111.2
115.8

8 8 .4
9 1 .0
9 3 .2
9 7.5
100. 3
102. 3
105.5
108. 7
110. 3
112. 7
113.3
114.7
121.7

103.1
106.5
105.9
100.9
106. 1
9 2 .9
100. 1
100. 1
9 4 .6
9 6 .0
9 5 .0
9 2 .8
105.7

Percent change in annual averages

1958-59......................................
1959-60 ......................................
1960-61......................................
1961-62......................................

1.0
2 .0
3 .7
3 .0
2 .8
2 .6
2 .2
2. 7

-2 .0
.4
3 .3
4 .4
-2 .5
.9
.9
.7

1962-63......................................
1963-64 ......................................

2 .3
1.8

1964-65 ......................................
1965-66......................................

2 .3
4 .6

1.3
1. 2
2 .4
5 .0

1954-55 ......................................
1955-56......................................
1956-57......................................
1957-58......................................

-8 .0

-1 . 1

-3 .3
11. 1
11.4
-3 .7
-1 .8

-1 .5
7 .3
16.4
3.0

1.3
2 .0
-1 .6
-1 .5
7 .5
9 .3

-2 .5
-1 .6
3-6
-1 .1
-3 .0
4 .8
5 .2

- 1 3 .9
-5 .1
15.2
6 .6
- 1 1 .0

-.6
4 .7
.9
-2 .5
-5
13. 8
14.4

-0 . 1
2 .6
2 .9
1.5
.7
2 .2
1.6
-.7
-.3
.9
.3
6 .5

0. 2
3 .0
3 .5
1 .9
1.0
2 .4

-1 .6
2 .6
.4
.8
5 .7

1 .6
1.4
3 .9
2.
.8
2 .0
2. 1
2. 1
1.4

3 .9
-. 1
2 .1

.5
1.5
4 .1

.5
1. 2
6. 1

-2 .3
13.9

103-9
103 . 0
102.7
102. 1
101. 3
100.9
101.8
103.1
103.1
103.7
104.0

112.4

111. 1
110.7

115.2
114. 7

9 1 .6
8 6.1

110.9

115. 1
115. 3
114.6

8 3.5
8 8 .6

104.3

111.0

104.7
105.4
106. 1
106.8
107.0
106.8
108.8

111.3
116.5
117.4
119.8
119.2
121.7

.3
-.5
-.5
.3
-.5
6 .4

1 .4
4 .9
-.3
7. 1

2 .9
2 .4
4 .6
2 .9
2 .0
3. 1
3 .0
1.5
2 .2

3 .3
-.6
-4 .7
5 .2
- 1 2 .4
7 .8
0
-5 .5
1. 5
-1 .0

Monthly indexes

1965:
J anuary..................................
February...............................
March......................................
A p r il......................................
M a y ........................................
June........................................

116. 1
116. 3
116. 5
116.8

J u ly ........................................
August....................................
September.............................
O ctober..................................
Novem ber.............................
Decem ber.............................

116.9
117.2
117.6
118. 2
118.8
119.2
119.6
119.9

1966:
J anuary..................................
F ebruary............................... '
March......................................
A p r il......................................
M a y ........................................
June........................................

120.4
120.8
121.2
121.6
122. 2
122.8

J u ly ........................................
August....................................
September.............................
O ctober..................................
Novem ber.............................
Decem ber.............................




108.9

109.8
111.8
112.6
112.7
112.0

125.2
125.7

112.3
112.7
114.4
114.0
113.8
112.8

126.3

112.6

123.5
124.0
124.6

See footnotes at end of table 6.

52

104. 8
104. 8
105-0
105-5
106.2
108.8
109.7
108.6
108.0
107.8
107.8

100.1
100.0
100. 3
100.4
101. 3
108.0
111.6
112. 5
112.5
111.8
111.3
113.3

116.6
118.8
119.8
118. 1
116. 3
116.6
116.6
116.9
117.2
116.6
114.5
113.4

103.1
102.4
102.6
102.6
103.9
109.6
110.9
110.1
109.8
109.1
108.3
108.9

109.4
111.4
113.9
115.1
113.3
112.8
112.2

9 6 .2
9 7 .0
9 7 .4
9 7.5
9 8 .6
108.9
117..2
119.9
119.9
118.8
118.3
122.8

130.9
133. 2
131.7
124.6
121.6
123.9
125.0

105.6
105.2
105.0
104. 5
104. 2
104. 0
104.3
105.0
105.3
105.5
1Q5.8
106.1

106.6
107.0
108. 1
108.9
109.3
109.6

111.0

113.3
115.3
117.6
121.4
125.9
124. 3
114.6
108. 5
108.5
109.9

112.3
112.7
112.8
111.4

125.9
126.4
123.8
119.1

114.8
116.0
117. 1
116.7

112.2
113.0

121.5
122.3
116.6

114. 1
114.0

115.3
114.9

111.9

114.9

116.5

113.7

114.3

111.0
110.8

111.0
111. 1
111. 1
111.3
111.3
111.4
112. 2

113-0
113.2
113.6
114.1
114. 3
114.7
114.8

114. 3
114.3
114.0
114. 3
114.8
114.0
115. 8

117.6
118. 3
118.6

117.3
118.4

119.5
118.9
119.9
119. 7
125. 2
126. 1

118.3
118.6
118.8

125. 1
125.6
125.7

8 7.5
8 3-9
87. 2
9 0.5
9 8 .6
103. 5
102.6
109.6

105.0
109. 1
108.5
105.9
9 8 .8
89. 1
9 3 .9
110. 5
111.8
116.1
107.9
111.9

Table A-3. Consumer Price Indexes for All Commodities and for Key Durables, 1954-66
(1957-59=

100)

Durable commodities
A ll
Year and month

commod­
ities

A ll
commodities
less food

Household durables
New
cars

A ll2

Used
cars

Tires

Appliances
A ll 2
A ll2

Relative importance 1.........

65.51

42.68

18.

2 .4 0

10

0 .7 2

2.35

T V sets

1 .26

5 .34

Furniture
and bedding

Floor
covering

1.40

0 .5 4

0 .4 6

Annual averages

9 5.5
9 8.5

95-6
9 4 .9
9 5 .9
9 8 .8

9 7.3
9 5 .4
95-4
9 8.5

1 0 0 .8

9 9 .9

1 0 0 .0

1 0 1 .2

1 9 6 1 ........................................

100.9
101.7
102. 3

1 9 6 2 ........................................

1 0 3 .2

1963........................................
1964........................................

104.1
105.2
106.4
109.2

1954........................................
1955........................................
1956........................................
1957 ......................................
1958 ......................................
1959 ......................................
1 9 6 0 ........................................

1965........................................
1 9 6 6 ......................................

9 5.5
9 4 .6

9 2.5
8 9 -2

9 1 .7
9 6.5
9 9 .6

9 2.2
87. 2
8 3 .9
9 4 .0
9 7 .4
108.8

9 3.1
95.1
9 7 .3
9 8 .4
101.9

9 8 .3
9 7 .9
9 9 .6
100. 3

9 6 .1
100. 3
1 0 0 .1

9 9.5

101.5

9 9.9

9 9.5

1 0 2 .2

1 0 0 .1

1 0 0 .8

8 8 .1

9 8 .9
9 8 .8
9 8.5
9 8 .4

9 6.5
9 3.5
9 1.5

9 9.5
9 4 .6

1 0 1 .1
1 0 1 .6

100.5
1 00.4

9 6 .9
9 7 .4

9 2 .2

1 0 2 .1

1 0 1 .1

9 0 .0

9 0 .1

1 0 2 .2

1 02.7

9 9 .8

9 6 .9

8 7.1
84.4

8 6 .3
82.1

1 0 2 .8

1 0 1 .6

105.4

1 0 1 .9

- 5 .7
.4

1 0 0 .8

102.5

105.6

1 0 1 .8

102. 1

1 1 5 .2

9 2 .6

102. 1

101.5
101. 2

116.6

105.1
106.5

1 0 2 .6

9 9 .0
9 7.2

1 2 0 .8

117.8

1 0 0 .2

9 8 .8

103.5
104.4

102.7

9 9 .4

9 2.1
9 3 .5

1 0 0 .1

1 0 2 .8

1 2 1 .6

101. 1

1 0 0 .8

9 8.9
9 7 .3
9 7 .8
100. 3
9 9.7

1 0 0 .2

1 0 2 .0

1 0 3 .0

9 9 .6
9 3 .9
9 4.3
9 8 .4

99.6

101. 5
100.9

1 0 1 .6

111.3
105.9

9 2 .6

101.7

103-9
102.5

1 0 1 .0

1U2 .1

9 6 .8

Percent change in annual averages
1954-55.................................
1955-56.................................
1956-57.................................
1957-58..................................

-0 -9
1 .0

3.1
2 .3
.1

1958-59..................................
1959-60 .................................
1 9 6 0 - 6 1 .................................
1 9 6 1 - 6 2 .................................

.8
.6

.9
.9

1962-63.................................
1963-64 .................................
1964-65 .................................
1 9 6 5 - 6 6 .................................

1 .1

-0 .7
1. 1
3-0

- 2 .0

1 .1

.1 .5
1.5

1.3
.5
.3

2 .8

5 .2
3-2

-.

1

1 .0

.7

.3
•9
-.4

1 .1
2 .6

1.3

4 .3
- 1 .3

-.6

.8

•9
.7

-3 .6

0

3 .2

.1

0

—. 4

-5 .4
-3 -8

2 .1

-2 .7

-4 . 9

2 .3

-

-4 .8

1 2 .0

1 .1

3 .6
11.7
- 6 .6

-2 .3
-7 .0

3 .9
9 .1

-.6

1 .2

-3
- 2. 2

4 .3
-.7

-

1 .8

-2 .5

3 .6

- 4. 9

5.1
4. 6
.5
2 .5
2.3

-4
1.7
.7
-. 1
-. 1

- 1. 2
-. 1
-.3
-.1

- 1 .5
-.1

.3
- 1 .7
.1
- .7
-2 .3
-3 -1
- 2 .1
- 1 .6
-3 -

2

-3 -1

-

1.5

1 .6

.5

2 .8

4 .3

2 .6

4 .4

1 .8

-.6

1 .3
.7

- .6

.2

1 .3
-.3
-. 1
.7

- 2 .6

1 .0

- 4.9

.5
.5
.1

-2 . 5
- 2 .3
—4. 2

- .2

•2

.6

1 .6

-

1 .1

2.5

0.3

8 8 .0

102.9

101.4

_
_
_

_
_
_
_

-4 .9

Monthly indexes^

1965:
January.............................
F ebruary...........................
M a r c h ...............................
A p r i l ..................................
M a y ....................................
J u n e .................................
J u ly .................

105.6
105.5
105.6
105.9
106.2

104.9
104.7
104.8
105.0
105.2

106.6
106.9
107.1
107.4

105. 1
104.7
104.7
104.9
105.3
105.6
105.7

January.............................

107.4

February .........................
M a r c h ...............................
A p r i l ......... ........................
M a y ........... , ......................
J une .................................
July . . . . . . . . . . . . . . . .

108.0
108.4
108.8
108.8

August...............................
September.........................
October ...........................
Novem ber.........................
Decem ber.........................

106.9
106.9
1 0 6 .6

103-6

101.5

103-3

1 0 1 .0

1 0 3 .2

1 0 0 .8

123.7
121.7
121.7

1 0 3 .0

100.7

1 2 0 .6

102.9

1 0 0 .2

121. 1

1 0 2 .6

9 7 .4
9 7.2

1 2 3 .0

102. 3

122.7

101.7
102. 1
102.4
102.4

97.1
9 6.5
9 7 .7
9 8 .7
9 8 .7

105.3

101.9

9 7 .4

114.8

105.4
105.6
106. 0

1 0 1 .8

9 7.2
97. 1
9 7 .4
9 7.0
9 6 .8

114.0
115.4
117.4
117.5
118.2

1 0 1 .8

120.3
118.9
119.4
118. 7
118. 2

_
_

9 7.8
9 7 .8
9 8 .0

_

_
9 9 .8
_
_
_
100.7

9 7 .9
9 7 .8
97.3
9 6 .3
9 5 .8
9 6 .0
9 6.0

8 8 .0

9 6 .0

_
_
_
_

9 6 .1

8 4 .8

96.1
96.1

_
-

_
_

8 2 .6

_

103.1

_
_
_
_
_

1 0 1 .6

1966:

A u g u s t.............................
September ......................
October.............................
Novem b er.........................
Decem ber.........................

109.0
109-3
109. 8
1 1 0 .0

110.3
1 1 0 . 2.
1 1 0 .1

106.3
106.4
106.7
106.6
107.0
107.6
107.8
107.7

1 0 2 .0

102.3
102.5
1 0 2 .6

103. 0
103.0
102.7
103.5
103.5
103.1

9 6 .7
9 5 .8

120.3
122. 1

9 4 .4
9 8 .4

1 2 0 .1
1 2 0 .8

9 9.3
9 8 .6

119.3
114. 2

_
100.4
_
1 0 2 .6

_
_
103-2
_
103-2

9 6 .2
9 6 .4
9 6.7
9 6 .7
9 6 .9
9 7 .0
9 7.3
9 7 .4
9 7 .6
9 7 .7

_

_

-

-

8 4 .6
_

82.
_

8 4 .3
_

8 2 .2

3

1 0 1 .6

1 0 5 .2

101.7

_
8 4 .3
_
-

_
_
_
8 1.8
_
-

_
_
_
_
106.2
_
-

£ 4 .2

.82.0

107.7

_

_

103.9

_

_
_
_
-

1 0 2 .2

102-3

See footnotes at end of table




53

Table A-4. Consumer Price Indexes for Nondurable Commodities, 1954-66
( 1957- 59=100)

Year and month

Relative importance

A ll nondurables
less food

.........

24.58

Apparel less footwear
Footwear
A ll2

7.51

Women’s

3 .9 9

Men’s

2 .8 6

Textile
housefurnishings

1.52

0 .6 0

Fuel oil
and coal

Gasoline

0 .7 2

Drugs
and
prescrip­
tions

Toilet
goods

1 .10

3 .0 8

Tobacco
products

1.43

1 .9 9

Annual averages

1954...........................................
1955...........................................
1956...........................................
1957...........................................
1958...........................................
1959...........................................
1960...........................................
1961...........................................
1962...........................................
1963...........................................
1964...........................................
1965...........................................
1966...........................................

9 4 .4
9 4 .4
96.5
99.1
9 9 .8
101.0
102.6
103.2
103.8
104.8
105.7
107.2
109.7

9 9 .0
9 8.2
9 9.2
100.1
9 9 .9
100.0
101.1
101.7
101.8
102.8
103.6
104.4
106. 3

9 9 .6
9 8 .7
9 9 .4

9 8.3
9 7 .2
9 8 .8

9 9 .9
9 9.8
100.2
100.7
1 01.0

100.3
9 9 .9
9 9 .7
101.6
102.8

100.9
101.7

103.3
104.7
106.1
107.4
110.3

102.3
103.1
105.1

8 8 .9
8 9 .8
9 4 .6
9 7 .6

9 9 .9
9 8.3
100.0
101.0
9 9.4
9 9.7
101..1
101.7
101.5
101.6
102.0
102.7

99.1
103.2
106.8
107.8
109.3
110.5
1 11.0
112.9
119.6

104.1

9 0 .6
9 1 .9
9 5 .9
100.8
9 9 .0
100.2
9 9.5
1 01.6
102.1
1 04.0
103.5
105.6
108.3

92.1
9 3 .4
9 6 .6
100.5
9 9 .2
100.4
103.3
102.1
102.7
102.5
102.1
106.0
108.3

9 1 .7
9 2 .7
9 4 .7
9 7.2
100.6
102.2
102.3
101.1
9 9.6
9 8.7
9 8.4
98.1
98.4

9 2.2
92.2
94.3
9 7.3
101.0
101.8
101.8
101.4
102.4
102.8
102.9
102.3
101.2

9 1 .7
9 2.1
9 4.1
9 6 .7
9 9 .7
103 .6
107.1
108.0
108.8
112.2
114.8
120.2
126.1

Percent change in annual averages

0
2 .2
2 .7
.7
1 .2
1 .6
.6
.6
1 .0

1954-55 ....................................
1955-56.............................
1956-57 ....................................
1957-58....................................
1958-59....................................
1959-60....................................
1960-61 ....................................
1961-62....................................
1962-63 ....................................
1963-64....................................
1964-65....................................
1965-66....................................

-0 .8
1 .0

-0 .9
.7

-1 .1
1 .6

.5
-.1
.4
.5
.3
-.1
.8
.6
.8

1.5
-.4
-.2

.9
1 .4

.9
-.2
.1
1.1
.6
.1
1 .0
.8
.8

2 .3

1.8

1 .9

1 .0

-1 .6
1.7
1 .0
-1 .6

5.3
3 .2

1 .9
1.2
.5
1 .4

1.5
4.1
3.5
.9
1 .4
1.1

1.3
1.2

.5
1 .7

.3
1 .4
.6
-.2
.1
.4
.7

2 .7

5 .9

1.4

1 .4
4 .4

1 .4
3 .4
4 .0

5.1
-1 .8
1.2
-.7
2.1

-1 .3
1.2
2 .9
-1 .2
.6
-.2
-.4
3 .8
2.2

.5
1 .9
-.5
2 .0
2.6

1.1
2 .2
2 .6
3 .5
1. ,

0

.1

-1 .2
-1 .5
-.9
-.3
-.3
.3

0 .4
2 .2
2 .8

2 .3
3.2
3 .8
.8
0
-.4
1 .0
.4
.1

3.1
3 .9
3 .4
.8
.7

-.6

3.1
2 .3
4 .7

-1 .1

4.9

Monthly indexes3

1965:
January ................................
February.............................
March....................................
A p r i l ....................................
M a y .................... .................
June......................................
J u ly ......................................
A u g u s t...............................
September...........................
October...............................
Novem ber...........................
Decem ber ............................

106.1
106.1
106.2
106.8
107.2
107.3
1 06.9
107.1
107.7
108.0
108.3
108.4

103.3
103.5
103.7
104.0
104.6
104.7
103.6
103.8
104.8
105.4
105.7
105.5

101.4
101.9
102.1
102.5
103.4
103.5
102.5
102.6
1 0 3 .8

104.3
104.6

106.2
106.2
106.3
1 06.6
107.0
107.1
106.8
107.2
107.9
108.7
109.2

104.3

109.3

108.6
108.6
109.0
109.6

111.5
111.6
111.7
112.0
112.2
112.3
112.0
112.7
113.4
114.4
115.1
115.6

_
-

102.6
-

103.1

_

_

_

_

-

-

-

_

106.5
105.4
104.6
103.4
103.2

-

-

_

_

-

_

_

_

103.5
104.3
106.9
107.2
108.6

-

106.5
106.7

-

-

106.8

98.1

103.5

-

-

_

_

_

_

-

-

_

-

-

-

_

-

119.3

_

_

_

-

-

-

-

106.5

98.1

100.3

123.7

1966:
J anuary .................................
February ..............................
March.....................................
A p r i l .....................................
M ay. .......................................
June......................................
J u ly ......................................
August ...............................
September...........................
O ctober...............................
Novem ber...........................
Decem ber...........................

108.0

104.3

102.6

108.3
108.6
109.0

1 0 4.6

103.1

105.2
105.6
106.1
106.0
105.8

103.9
104.2
105.0
104.7
104.6

105.5
107.4
108.1
108.6
108.8

1 0 3 .8

109.3
109.5
109.7
109.6
110.5
110.9
111.3
111.4

See footnotes at end of table 6.

54




106.3
107.5
107.8
108.1

109.9
110.1
109.6
1 09.9
111.2
111.5
112.4
112.6

115.6
116.2
116.9
118.1
119.0
119.8
119.8
120.4
121.3
122.2
122.8
122.9

_

108.9
1 09.0

-

102.5

104.9

108.9
108.5
108.0
107.0
107.0
107.0
107.4

106.4

108.3
108.9
110.2

-

103.6
-

-

-

_

_

_

_

-

-

-

-

106.9

9 8.4

100.9

-

-

-

-

-

-

-

-

107.7
-

9 8 .6

101.2

-

-

-

-

-

109.5

98.5

-

-

-

-

110.1

-

-

-

9 8.3

101.8

1 23.9

126.2

127.7

101.5

128.0

Table A-5. Consumer Price Indexes for Services, 1954-66
(1 9 5 7 -5 9= 10 0 )
Household services
less rent
Year and month

A ll
services

Rent
A ll2

Relative importance1 ............

3 4.49

5 .4 4

Mortgage
interest
rates

13.57

2 .84

Transportation services

A ll2

Local
transit

Medical care services

Auto
insurance

0 .7 8

5.02

A ll2

Physicians’
fees

1.50

4 .7 0

1.64

D aily
hospital
charges

Other
services

5.75

0 .3 9

Annual averages

1954 ...........................................
1955 ...........................................
1956............................................
1957 ...........................................
1958 ...........................................
1959 ...........................................
1960 ...........................................
1 9 6 1 ...........................................
1962 ...........................................
1963
1964
1965
1966

...........................................
...........................................
...........................................
..................................

8 8.7
9 0.5
9 2.8
9 6 .6
100.3
103.2
106.6
108.8
110.9
113.0
115.2
117.8
122. 3

9 3.5
9 4 .8
9 6.5
9 8 .3
100.1
101.6
103.1
104.4
105.7
106.8
107.8
108.9
110.4

( 4)
( 4)
9 0 .4
9 5.7
100.8
103.6
108.0
109.2
110.6
113.0
114.8
1 1 7 .0
121. 5

9 0.1
9 0 .4
9 3.0
9 9.2
9 8 .8
102.0
106.7

104.3
107.0

103.9
102.0
100.8
100.1

109.5
111.2
112.4
115.0

100.5
106.9

119.3
124. 3

8 8 .9
89. 1
90.5
9 4.8
100.8

8 5 .4
8 8 .9
'9 2 .4
9 5.2
100.9
104.0
108.1

88.2
8 4.7
8 2 .4
8 9.2
102.2
108.7

8 5.5
8 8 .0
9 1.4
9 5.3
100.0
104.8

112.9
117.3
120.0
122.8
125.4

111.5
112.5
111.5
113.3
119.2
130.5

109.1
113.1
116.8

130.9

139.9

133.9

120.3
123.2
127.1

8 7 .0
9 0 .0
9 2.7
9 6 .7
100.0
103.4
106.0
108.7

7 9.2
8 3.0
87.5
9 4.5
9 9 .9
105.5
112.7

111.9
114.4

121.3
129.8
138.0

117.3
121.5
128.5

144.9
153.3
168.0

3 .4
3 .0

4 .8
5 .4
8 .0
5 .7
'5 .6
6 .8
7 .6
7 .0

( 4)
( 4)
93.5
9 7.2
100.2
102.6
106.2
109.7
112.6
115.3*
118.5
121.8
126. 5

Percent change in annual. averages

1954-55......................................
1955-56......................................
1956-57............................. ........
1957-58........................... ...........

2 .0

1958-59......................................
1959-60......................................
i 960-61......................... .............
1961-62......................................

2 .9
3 .3
2 .1

2 .5
4 .1
3 .8

1962-63......................................
1963-64......................................

1 .9
1.9
1.9

1964-65......................................
1965-66.........................; ..........

2 .3
3 .8

1 .4
1.8
1.9
1 .8
1.5
1.5
1.3
1.2
1 .0
.9
1 .0
1 .4

( 4)
( 4)
5 .9
5 .3
2 .8
4 .2
1.1
1.3
2 .2
1 .6
1.9
3 .8

0 .3
2 ,9
6 .7
-.4
3 .2
4 .6
-2 .6
-1 .8
-1 .2
-.7
.4
6.4

0 .2
1.6
4 .8

4 .1
3 .9
3-0
6 .0

6 .3
3.5
2 .6

3 .1
3 .9
4 ,4
3 .9
2 .3
2 .3
2.1
4.4

2 .3
1.6
1.1
2 .3
3 .7
4. 2

-4 .0
2 .7

2 .9
3 .9
4 .3
4 .9
4 .8
4 .1
3 .7

8 .3
14.6
6 .4
2 .6
.9
-.9
1 .6
5 .2

4 .3
3 .4
3 .4
2 .5
2 .5
2 .9
2 .2
2 .5 ‘
3 .6
5.8

3.3
3 .0
2 .4
3 .2

9 .5
7.2

5 .4

( 4)
( 4)
4 .0
3 .1
2 .4

6 .3
5 .0
5 .8

3 .5
3-3
2 .6
2 .4
2 .8
2 .8

9.6

3 .9

Monthly indexes3

1965:
J anuary..................................
February................................
M a rch ....................................
A p r il......................................
M ay.........................................
J u n e ......................................
J u l y ......................................
A u g u s t..................................
September.................. ..
O c to b e r................................
November.............................
December.............................

116.6

108.4

116.0

_

116.9
117.0
117. 3

108.5
108.7
108.8
108.8
108.8

116.2
116.2

-

116.3
116.5
116.8

-

108.9
109.0

116.9
116.6
117.6

117.5
117.6
117.8
117.9
118.5
118.7
119.0
119.3

109.1
109.2
109.3
109.5

117.9
118.1
118.4

-

-

100.5
-

100.7

117.7
118.2
118.4
118.5
118.7
118.6
119.1
119.6
120.2
120.7
121.0
121.3

-

125.3
-

126.1

-

125.0

-

125.5
125.9
126.2
126.5
127.0

-

128.6
-

127.5
127.7
127.8
128.1

-

128.5
128.9

-

136.4

-

121.1
123-3

-

120.1

152.5
-

120.4
120.7

-

157.1

121.3
121.6
121.7
121.9
122.1
122.6
122.8
123.0
123-2

1966:
January..................................
F ebruary................................
M a rch ....................................
A p ril......................................
M ay........................................
J u n e ......................................
J u ly .......................................
A u g u s t..................................
S eptem ber...........................
October..................................
November.......................
December ................

119.5
119.7
120.1
121.1
121.5
122.0
122.6
123-0
123-5
124.1
124.7
125.2

See footnotes at end of table 6.




109.7
109.8
109.9
110.1
110.2
110. 2
110. 3
110.6
110.7
111.0
111.2
111.3

117.9
118.1
118.5
120.2
120.9
121.7
122. 1
122.4
123.0
123.5
124.2
124. 9

101.4
107.5
109.8
__ _
113.2

122.5
122.6
122.6
123.0
123.0
123.2
125-0
125.3
125.5
125.9
126.1
126. 5

126.2
126.2
137.4
137.6

138.2
139.4
141.6
142

.4

129.5
129.9
130.8
131.4
132.1
133.0
133-9
134.7
•

136.2
137.4
138.6
139.4

-

-

125.5

160.8

128.0

164.2

130.8

172.6

132.9

183.0.

-

123.8
124.1
125.0
125.5
125.9
126.4
126.7
127.1
127.5
128.2
128. 5
128.9

55

Table A-6

AH-item« Consumer Price ■-'*,o*es for 23 Cities, Annual Averages and Percent Changes, 1954-66
(1957-59-100 unless otherwise indicated5)

City

19667

1965

1964

1963

1962

I960

1961

1959 ’

1958

1957

1956

1955

1954

Annual averages
United States6 ......................................

i 113.1

109.9

108. 1

106. 7

105.4

104.2

103- 1

101. 5

100. 7

9 8 .0

9 4.7

93.3

9 3 .6

A tla n ta ...............................................
B a ltim o re ..........................................
B o s to n ........................................ .
Buffalo5 .............................................
C h ic a g o .............................................

111.5
113.4
-

108. 1
109.6
113.2

105. 1
106.8
109-5
_

104. 1
105.2
107.4
_

103- 2
104.4
105. 1
_

102.7
103.4
103-6
_

101. 3
102. 2
101. 5
_

100.6
100. 3
100.7
_

98. 1
9 7.5
9 7.8
_

9 5 .4
94. 2
94. 5
_

9 3.9
9 2.8
9 1.8
_

9 4.3
9 2.7
9 1 .4
_

104.6
103-6

103-6
102.6
103. 2
_

101.6
101. 2
101. 1
_

9 4.8

103-5
_

103.0
102. 2
102. 3
_

9 7.8

ir ^ 3
-

105.7
104.7
104.7
_

100.7

C in c in n a ti.........................................
C le v e la n d .........................................
D a lla s 5 ..............................................
Detroit .............................................
Honolulu5 <........................................
H o u s to n .............................................
Kansas C ity ......................................
Los A n g e le s ....................................
M ilw a u k e e ........................................
M inneap olis......................................
New Y o r k ..........................................
Philadelphia......................................
Pittsburgh. .........................................
San Diego5 ........................................
San Francisco.................................
S e a tt le ...............................................
St. Louis.............................................
Washington........................................

106.7
107.9
111. 1
101. 1
106. 1
106. 3
105.2
100. 1
104.0
100. 3
107. 2

100.5
100. 5
_

9 8.3
9 8.3
_

9 5.3
9 5.0
_

9 3.5
9 3 .4
93-1

9 2 .9
9 3.8
9 2.8

103-2
105.6
107. 2
108. 2
104.9
107.0
108.7
107. 2
107. 1
-

102. 2
104.6
106. 1
106.6

101.9
-

101. 3
102. 1

100. 5
_

99.1
_

9 6.3
_

9 4.5
_

9 4.6
_

103.9
105.5
106.4
105. 2
105.9
-

100.4
101. 1
101.8
102. 2
100. 5
101.5
101.9
101.4

9 5 .6
9 5 .0
94. 1
9 5.8
9 4.6
94. 5
95. 3
9 4.6
-

94. 1
9 3.5
9 2.7
9 4 .4
9 4 .4
93.1
94. 1
9 2.4
-

9 4 .7
93-4
9 2.7
9 4.5
9 4 .4
93-6
9 4.2
93-0
-

108.9
108.2
106.2
106.4

107.
106.
105.
104.

91. 1
9 2.8
9 3.5
9 4 .4

9 1.7
9 2 .4
9 3 .9
94.5

110.J

n i.i
105.1
• 116.3
114.7
116.0
113.7
115.6
113.5
-

103.5
107.6
107. 2
106.9
101.4
106.4
102. 1
108.5
113.3
112.5
108. 2
109-5
112.2
110.6
110. 2
100. 1
112.7
111.0
109.9
109.6

109. 8
110. 2
106. 1
108.0
110.4
108.8
108.5
110.6
109.7
108.1
108.1

4
5
1
6

102.6
104. 5
105.4
102. 5
104. 2
104.8
104.4
105.0
-

103. 1
104. 1
101.8
103. 1
103.9
103.2
104. 1
-

105.8

104. 5

104.9
103-9
103.7

103.3
102.4
102.2

100. 3

9 8.6

101.9
-

100.3
100.6
100. 5
100. 5
100. 5
100. 2
100.6
-

9 7 .9
9 7.2
99-1
9 7 .9
9 7.6
9 8 .4
9 7.6
-

102.4
102.0
101.8
101. 1

100. 5
100. 1
100.5
100.6

9 7 .9
9 7.7
9 8.3

93. 3
9 4.0
9 4 .4
9 5 .4

9 7 .0

_

_

Percent change from previous year
United States........................................

2 .9

1.7

1.3

A tla n ta ......................................
B a ltim o re ..........................................
B o s to n ...............................................
B u ffa lo ...............................................
C h ic a g o .............................................
Cincinnati ........................................
C leveland..........................................
Dallas ...............................................
D e tr o it...............................................
Honolulu.............................................
H o u s to n ............................................
Kansas C it y ......................................
Los A n g e le s ....................................
M ilw a u k e e ........................................
M inneap olis......................................
New York ........................... . . ! . . . .
Philadelphia................................. .. .
P itts b u rg h ........................................
San Diego ........................................
San Francisco ..................................
S e a tt le ...............................................
St. Louis.............................................
Washington........................................

3.1
3 .5
-

1.3
1 .6
1 .9
2 .4
1 .4
.8
1 .6

1.5
1.0

2 .9
2 .4
-

-

1.5
.4
1.5
.5
.8
-

1. 2

1.2

1. 1

1.6

0 .8

2 .8

3.5

1. 5

-0 -3

0 .4

1.0

0 .9
.8
2 .2
-

0. 5
1.0
1.4
-

1.4
1. 2
2. 1
-

0 .7
1.9
0 .8
-

2. 5
2 .9
3 .0
-

2 .8
3.5
3 .5
-

1.6
1-5
2 .9
-

-0 .4
.1
.4
_

-.3
.3
.4

1.0
1.0

.6
.4
.9

1 .4
1.0
1 .2
-

.9
.7
.6

3.0
2. 2
2. 2
-

3 .2
3. 1
3.5
-

1.4
2 .0
2. 0
-

.6
-.4
-

1.5
0
1 .0
-

.6

.9

-. 1
.8
1. 5
1 .6
0

1.4
-

2 .9
-

1.9
-

-. 1
-

-

1.7

3. 1
3. 1
3 .3
3 .4
3.5
3 .3
3 .3
3-2

1.6
1.6

-.6
.1

1.5
1.5
.2
1.5
1.3
2 .4

0
-. 1
0
-.5
-. 1
-.6

1
.4
-.1
0
1 .0
.6
1.1
.9
-

1.5
2 .0
1. 1
1. 1
1. 2
1.0
1.0
1.0

.3

-

-

-

-

-

-

-

-

-

-

-

2 .6

1.9
1.2
1.7
1.4

1.6
1.4
1.8
1.6

1.4
1 .6
1.0
1. 7

1.5
1.5
1. 2
.9

1. 2
1.5
1.5
1.5

2. 1

1.9
1 .9
1.3
.5

3 .6
2. 2

4 .0
4. 1
3.5
3 .0

2 .4

-.7
.4
-.4
-. 1

3 .3

“

.9
1.6
1.5
1. 3

-

-

.5
1. 4
1. 2
,7
1. 1

1.0

1.9
1. 1

1.9
1.5
1. 1
1 .4
1. 2
1.5
.8
.9

•9
1. 2
.9

1.3
1.9
1.3
1.6
2 .0
1.8
2 .2

1.5
1.0
1 .4
2 .2

2 Includes groups not shown separately.




-

-

-

1.5
2 .4
1.8
1. 1

.3
-

3 Some indexes are not computed on a monthly basis. In 1965, numer­
ous indexes for specific items, previously calculated four times a year, were only
computed semi-annually but, in 1966, they were once more placed on a quarterly
basis.

56

-

3. 4...
2 .8
-

2 .9
2 .6
2 .0
-

1 Relative importance as of December 1965. The relative importance of an item
is its value or weight in the index expressed as a percent of the all-items C P I.

4 Index not available before 1956.

.3
-

1.3
2 .3
1 .8
1 .2
3 .2
2.1
2 .0
1 .4
1.6
1.7
1.6

4 .4

1.3
.6
1. 1

1 .0
1.4
1.2
1.3

2 .5
3. 5
1 .4
2.7
3 .0
1.8
3. 1

2 .9
2 .3

1.3
1.0
1.1

.4

.1
.1
.4
0

5 Indexes for Buffalo and Dallas based on November 1963=100; Honolulu on
December 1963=100, and San Diego on February 1965=100.
6 The U. S. City average index represents a ll urban places in the United States
and is based upon data obtained in 56 cities. Separate indexes are published monthly
for 5 cities and four times a year for an additional 18 cities. The individual city
indexes do not show whether prices or living costs are higher or lower in one city
than in another but indicate price change within a city from one period to another.
1 Annual averages for 1966 and percent changes from 1965 to 1966 were not
available at time of publication for those cities for which price data are not
collected in December.

Table A-7. Wholesale Price Indexes, by Stage of Processing, 1954-66
(1957-59=100)
Commodities other than farm product s and foods (industrial commodities)

Farm products and foods

Finished goods

A ll

Year and month

commodities

•
Crude1

All

Intermediate

Consumer
foods2

Crude

All

Consumer

Intermediate
Producer

Durable

Nondurable

Annual averages

9 1 .8

9 2 .9
9 3 -2

1 0 0 .7

106. 2

1 0 0 .7

9 7 .1

9 0 .4

8 8 .0

8 9 .8

1955................................................
1956.................................................

9 5 .9

9 6 .2

9 7 .5

9 4 .7

9 2 .4

9 6 .6

9 6 .2

9 4 .2

9 7 .9

9 5 .9

9 7 .7

9 8 .4

9 9 .7

9 6 .5
9 9 .2

9 2 .0

9 9 .0

9 4 .5
9 7 .8

1 0 2 .3

1957................................................

9 5 .3
9 8 .6

9 2 .5
9 7 .0

1 0 0 .9

9 9 .6

9 7 .7

9 8 .7

9 9 .9

1954.................................................

8 3 .1
8 5 .6

9 2 .8

9 5 .3
9 5 .8

1 0 3 .2

1 0 4 .2

9 9 .5

9 6 .9

9 9 .4

1 0 0 .2

1959................................................

1 0 0 .6

9 8 .4

9 7 .4

9 8 .3

103. 5
9 8 .7

1 0 0 .1

101. 3

1 0 2 .3

1 0 1 .0

102. 1

I 9 6 0 .................................................

1 0 0 .7

9 8 .6

9 6 .2

9 9 .5

1 0 0 .8

101. 3

9 8 .3

1 0 1 .4

102. 3

1 0 1 .3
100. f

1 0 1 .5

1961................................................

1 0 0 .3
1 0 0 .6

9 8 .6

9 4 .9
9 6 .8

1 0 2 .6

1 0 0 .4

1 0 0 .8

9 7 .2

100. 1

1 0 2 .5

9 9 .6

1 0 0 .5

1 0 0 .8

9 5 .6

100. 5
1 0 0 .0

1 0 1 .6

9 4 .0

1 0 5 .5
1 0 4 .0

9 9 .9
9 9 .6

1 0 2 .9

9 8 .7

1 0 1 .3
1 00 .1

1 0 0 .4

1958.................................................

1962................................................
1963................................................
1964................................................

1 0 0 .3
1 0 0 .5

9 8 .0

9 1 .9

1965................................................
1966................................................

1 0 2 .5

102. 1

1 0 5 .9

1 0 8 .9

9 8 .3
1 0 7 .2

1 0 2 .0

1 0 0 .7

1 0 0 .6

1 0 1 .2

1 0 6 .6

104. 5

1 1 1 .3

1 1 1 .2

1 0 2 .5
1 0 4 .8

103. 1
104. 1

9 4 .3
9 7 .1

100. 2

1 0 0 .9

101. 5

1 0 4 .5

1 0 3 .6

.1 0 5 .4
1 0 8 .0

9 9 .5
9 9 .9
9 9 .6

9 9 .3
1 0 0 .8
101. 5
1 0 1 .9
1 0 1 .6
1 0 2 .8

1 0 0 .2

1 0 4 .8

0 .5
2 .0

Percent change in annual averages

1954-55 .........................................
1955-56 .........................................

0 .3
3 -2

-4 .8

-9 -4

-3 .2

-.6

-2 .0

.4

-2 .5
-.2

2 .2

9 .8

3 .0

3 .0

1 .1

4 .4

5 .9

4 .9

7 .5

3 .3

1 9 5 6 -5 7 .........................................

2 .9

4 .5

1 .8

3 .5

2 .8

-1 .4

2 .7

6 .2

2 .9

1 9 5 7 -5 8 .........................................

1 .4

4 .7

5 .9

-.2

2 .6

1 .4

2 .3
-.6

1 9 5 8 -5 9 .........................................
1959-60 .........................................

-6 .5

—4 .6

.3
1 .8

-4 .0

-4 .7

2 .3
-3 .6

5 .8

.2

5 .6

1 .6

1 .9

1 .2

1 .5

1. 2

2. 1

0

-3 .9

.4

.2

-.4

1 9 6 0 -6 1 .........................................

-.4

-.4

-.5
0

-1 .1

-1 .3

.2

-.4

2 .0

3 .1
-2 .0

-2 .9
-2 . 2

5 .0

-1 .2

-1 .4

.5

.5

3 .5

. 1

.2
0
1 .0

-1 . 2
-1 .4

.9

1 9 6 1 -6 2 .........................................

.3

1 9 6 2 -6 3 .........................................
1963-64 .........................................

— 3
.2

-.9
-.7

1964-65 .........................................

2 .0

4 .2

7 .0

2 .5

3 .9

1965-66 .........................................

3 .3

6 .7

9 .1

4 .4

6 .4

.7
0

-1 .6

-. 2

.4

-.5

-1 .4
3 .0

-.3
.6

.2
1 .0

-.5
.4

1 .3

3 .9

1 .3

1. 2

-.3

- 3
1. 2

2 .2

3 .6

2 .1

2 .5

.6

1 .9

-. 1

. 1
.3

Monthly indexes

1965
1 0 0 .8

1 0 1 .9

9 9 .0

1 0 0 .8

104. 9

9 9 .8

102. 3

1 0 0 .9

1 0 1 .9
1 0 2 .0

9 9 .4

1 0 0 .8

105. 0

9 9 .7

102. 2

9 9 .7

1 0 0 .9

105. 1

9 9 .7

102. 2

102. 1

1 0 0 .1

101. 1

1 0 5 -3

9 9 .7

102. 2

102. 3

1 0 1 .0

1 0 1 .4

1 0 5 .3
1 0 5 .4

9 9 .6

102. 5

1 0 1 .5

9 9 .7

1 0 2 .6

J anu a ry.......................................

1 0 1 .0

9 8 .1

9 1 .8

F ebruary....................................

101. 2

9 8 .7

9 3 -5

M a rch .........................................

1 0 1 .3
1 0 1 .7

9 9 .0

9 3 .9

1 0 5 .6

A p r il............................................

1 0 0 .2

9 5 .4

1 0 5 .8

101. 3
1 0 2 .6

M a y .............................................. '

102. 1

101. 1

9 7 .3
1 0 1 .0

104. 9

103. 5

106. 3
106. 3

1 0 5 .9

1 0 5 .6

1 0 2 .9

103. 7

1 0 0 .9

1 0 6 .2

1 0 6 .0

1 0 2 .5

1 0 0 .5
1 0 0 .4

1 0 1 .5

1 0 5 .4

9 9 .6

102. 7

1 0 3 .3

1 0 1 .1

1 0 6 .5

101. 7

1 0 1 .7

1 0 5 .5

9 9 .5

1 0 2 .8

103. 5

1 0 0 .0

1 0 6 .9

1 0 5 .3
1 06 .1

1 0 2 .7

September..................................

1 0 2 .9
1 0 3 .0

1 0 2 .7

1 0 3 .0

103 . 6

100. 1

107. 5

1 0 2 .8

1 0 1 .9

9 9 .5

1 03 -3

1 0 4 .3
106. 5

1 0 0 .7

1 0 8 .1

1 0 6 .3
107. 2

105. 5
1 0 5 .6

9 9 .5

103. 1

1 0 1 .3
1 0 2 .0

1 0 1 .8

October.......................................

103. 2

1 0 2 .7

102. 1

9 9 .6

1 0 3 .6

104. 1

1 0 8 .8

1 0 8 .9

103- 2

1 0 2 .6

102. 2

9 9 .6

1 0 3 .7

J u n e ............................................
J u ly .....................................................'
A u g u s t.......................................i

1 0 2 .8

November..................................

103. 5

D ecem ber..................................

104. 1

103. 5

1 0 2 .5

1 0 5 .9
1 0 6 .0

1966J a n u a r y ..................................

104. 6

1 0 7 .7

1 0 6 .8

1 09 .5

103. 5

104. 0

1 0 2 .4

1 0 6 .2

9 9 .7

F ebruary..................................

1 0 5 .4

1 0 9 .8

1 0 9 .6

111. 1

1 11 .5

103. 8

1 0 5 .7

1 0 2 .6

1 0 6 .6

9 9 .7

1 0 3 .9
104. 0

M arch .......................................

1 0 5 .4

1 0 9 .4

108. 3
107. 5

1 1 0 .8

104. 0

1 0 6 .6

1 0 6 .8

9 9 .7

104. 1

1 0 4 .3
104. 7

106. 1

1 0 2 .9
1 0 3 .4

1 0 7 .0

9 9 .8

104. 3

1 0 5 .9

103. 8

1 0 7 .6

1 0 0 .2

104. 5

1 0 7 .9

1 0 0 .1

104. 9

108. 1

1 0 0 .2

1 0 5 .0
105. 2

A p ril.........................................

1P5. 5

1 0 8 .7

M ay............................................

1 0 5 .6

1 0 7 .9

1 0 9 .7

110. 1

1 1 1 .5
1 1 0 .7

1 0 6 .5
1 0 6 .0

1 0 9 .8

1 0 9 .6

1 1 0 .0

1 09 -5

1 0 4 .9 ,

1 0 6 .5

1 0 3 .9

1 1 1 .2

1 0 5 .2

1 0 6 .4 '

104. 0

1 1 2 .8

1 0 5 .2

103. 3

104. 2

1 0 8 .3

100. 1

1 1 4 .5

1 0 5 .2

1 0 2 .8

104. 1

1 0 8 .4

1 0 0 .0

1 0 5 .4

1 1 2 .2

1 0 5 .3

1 0 2 .8

104. 1

1 0 9 .1

1 0 0 .9

1 0 5 .5
1 0 5 .7
1 0 5 .5

J u n e .........................................

1 0 5 .7

1 0 7 .7

J u ly ..................................................

1 0 9 .9

A u g u s t.....................................

1 0 6 .4
1 0 6 .8

1 1 1 .3

109. 1
111. 2

September................................

1 0 6 .8

1 1 1 .5

1 0 9 .9

1 1 1 .9
1 1 4 .8
1 1 3 .6

October....................................

106. 2

1 0 8 .8

1 0 6 .2

1 1 1 .6

'

November................................

*1 0 5 .9

1 0 7 .1

1 0 2 .5

1 1 1 .2

1 1 1 .3

1 0 5 .5

1 0 2 .7

1 0 4 .1

109. 8

1 0 1 .2

Decem ber................................

1 0 5 .9

106.7

1Q2.3

1 1 0 .9

1 1 0 .5

1 0 5 .5

1 0 1 .6

1 0 4 .1

110.2

1 0 1 .3

See footnotes at end of Table 10.




57

Table A-8. Wholesale Price Indexes for Selected Farm Products, 1954-66
(1957-59=100)

Year and month

Relative importance4

A ll
farm
products3

10.89

Fresh
fruits

0. 47

Fresh
and dried
vegetables

0 .5 4

Grains
A ll3
1.42

Livestock
Wheat

A ll3

0 .6 4

3-70

Steers
0 .7 7

Live
poultry

Eggs

Fluid
milk

Hogs
0 .6 8

0 .4 0

0 .6 0

1.47

Annual averages
1954 ............................. ..
1955
1956
1957
1958

........................................
........................................
........................................
.........................................

1959 ........................................
1960 ........................................
1 9 6 1 ........................................
1962.........................................
1963 ........................................
1 9 6 4 ........................................
1965.........................................
1966.........................................

104. 4

9 9 .2

9 7 .9
9 6 .6
9 9 .2
103.6
9 7.2
9 6 .9
9 6 .0
9 7 .7
. 95-7
9 4.3
9 8 .4
105.6

9 5.5
9 5 .0
102. 3
104.4
93-3
107.8
103.6
107.0
107.5
109. 7
9 6.9
104.9

92.1
102.6
103. 1
96. 5
106.3
9 7.2
95.4
8 4 .6
90.5
8 7 .4
9 9.9
109.0
102.8

114.0
108.4
1 0 8 .4

104.7
9 9 .0
9 6 .3
9 4 .2
9 5 .6
9 8 .8
101.9
9 4.1
8 9 .6
913

108.8
107.5
106.0
106.8
98. 5
9 4 .7
9 5.8
9 7 .4
103.3
103.6
88. 7
7 5.0
84.8

9 6 .4
82. 8
7 9.7
9 1 .9
108. 5
9 9.6
9 5.5
9 3.8
9 7 .6
8 9 .3
8 5 .0
100. 5
110.0

9 2 .8

128.8

8 9.5
84. 7
8 9.8

8 9 .9
8 4 .0

128.5
136.7
112. 3

102.9
115.1
8 1 .9
9 0 .8
9 6 .6

104.3
102.4
93-3
9 9 .6
8 2 .8

9 5.3
88. 3
8 8 .0
120.6

8 5 .3
8 4.7
8 2 .0
8 7 .2

135.1

91.4

103-9
106.4
9 9 .4
9 3 .3
102.6
9 0 .4
8 5 .9
9 5.7
97.8

106.7
114.6
109.4
103.2
109.2
8 7 .6
103. 2
9 9 .0
9 5.2
9 4 .0
9 0 .8
9 3.5
107.9

9 5 .9
9 6 .4
9 9.5
101.1
9 9.5
9 9 .4
103.2
103-9
101. 2
100.6
102.0
103.5
117.6

Percent change in annual averages
1954-55....................................
1955-56....................................

-6 .2
-1 .3

-3 .7
-5

11.4
.5

-4 .9
0

-1 .2
-1 .4

1956-57....................................
1957-58....................................
1958- 59....................................
1959-60 ....................................
1960-61....................................
1961-62....................................

2 .7
4 .4
- 6 ,2

7 .7
2. 1
-1 0 .6

-6 .4
10.2

•8
- 7 .8

-.3
-9
1 .8
-2 .0

-1 .9
-1 1 .3
7 .0
-3 .4

4 .3

15.5
- 3 .9
3.3
.5
2 .0
-1 1 .7

-3 .4
-5 .4
- 2 .7
- 2 .2

7 .3

8. 3

1962-63................ ..............
1963-64....................................
1964-65....................................
1965-66....................................

- 1 .5

-8 .6

14.3
9.1
-5 .7

1.5
3 .3
3.1
- 7 .7
-4 .8

8 .6

-1 4 . 1
-3 .7

-3 .6

- 3 .9
1.2
1.7
6.1

15. 3
18. 1
-8 . 2
-4 . 1
-1 .8
4. 1

6 .0
15.7
2 .4
-6 .6
-6 .1
1 0.0

.3
-1 4 .4
-1 5 .4

-8 .5
-4 .8
18. 2

13.1

9 .5

-5 .4

- 3 0 .2
-6 .6

6. 4
- 1 7 .8

22.5
11.9
-2 8 .8

-7 . 1
-1 .8
-8 .9
6 .8

- 1 1 .9
- 5 .0
1 1.4

10.9
6. 4
-1 .3
-7 . 3
-.3
3 7.0

- 1 6 .9
3 .0
-.7
-3 . 2
6 .3

2. 2

12.0

8 8 .9
8 9.8

7 .4
-4 -5
-5 -7
5 .8
- 1 9 .8
17.8
- 4 .1
-3 .8
-1 .3

0. 5
3 .2

1 .6
-1 .6
-. 1
3 .8
.7
-2 .6
-.6

3 .0

1 .4
1.5

4 .8

15. 4

13.6

9 0.9
9 4 .8
9 6.7

8 3.5
8 5 .8
8 9 .7

7 8 .9
7 6.7

99.1
112.4
133-2
136.0
139-4
126. 7
130.5
135.3
152.4

8 6 .9
8 4 .4
8 8 .0
88. 5
86. 5

8 6 .9
9 1.2
7 9.0
8 2.0
8 4 .7
100.0

8 5.3
85.5
8 5 .0
8 7.2

105.9
105.1
114.0
118.2

104.1
103.5
100.1
101.2
100.2
100.7
102.4
103-9
104.8

157.8
158.2

9 1 .9
9 5 .4

134.9
131-5
134.3
137.7
138.4

100.9
95.1
101. 3
9 5.6
9 4.2
8 9 .8

9 9 .8
116. 3
118.5
101.8

-3 .4

Monthly indexes
1965
J anuary................................

93-0

9 1 .6

107.0

9 0 .4

February.............................
M a r c h ..................................
A p r i l ....................................
M a y ......................................

9 4.5
9 5.4
9 7 .6
9 8 .4
100. 3
100.0
99.1
9 9.5
9 9 .4
100. 3
103.0

9 4 .9
8 9.5
9 8 .6

112.2
128. 1
140.0
148.6
119.0
115. 2
74. 7
8 2.8
8 9 .9
9 4.8

9 0.5
9 0 .6
9 1.2
9 1 .0
8 9 .6
8 8.4
88. 3
8 9.3
8 8.6
8 7 .4
90. 1

J u n e ....................................
July . . . . . . . . . . . . . . . . .
A u g u s t...............................
Septem ber..........................
O ctober...............................
Novem ber...........................
D ecem ber...........................

9 1.0
102. 3
9 4.8
9 7 .9
112.8
104.0
9 5 .6
90. 2

95.5

77. 1
7 6.7
7 5.0
7 4.6
7 3.3
71.5
71.7
7 4.7
7 4.9
7 5 .0
7 7.3
7 8.7

8 5 .7
88. 7
8 9 .7
9 1 .9
9 7.7
106.8
107.2
109.0
104.8
105.6
106. 5

8 9-3
9 2.6
97. 2
9 7 .7
9 8 .6
101.0
9 8 .6
9 8 .2
9 7 .7

111.9

99. 1

115.3
119.5
115.9
114.7

9 9.1
103-3
106.1

105.9
107. 3
108.0

1966
January...............................
February.............................
M a r c h .................................
A p r il....................................
M a y ......................................
June......................................

106.4
104.5
104.2

Ju l y . . . . . . . . . . . . . . . . . .
August..................................
September...........................
October .............................

107. 8
108. 1
108.7
104.4

128.9
109-2

Novem ber...........................
December ...........................

102.5
101.8

104. 3
105-0

104. 5
107.4
106.8

See footnotes at end of Table 10.

58




89. 1
9 2.2

107.6
105.2

9 6.5
101. 7

109. 1
123.5
101.6
102.2
101.2

108.4
9 9 .7
117.2
107.0

91-5
9 6 .6
8 8 .8
106.1
9 9.7

9 2 .4
9 2 .9
9 0.8
91. 2
9 3 .6

7 7.3
8 0 .4

9 4 .9
103.1
105.6
104.6

8 4.3
93.5
9 2.7
9 3.7

109.2

9 8 .9
9 8 .0
101. 5

8 5 .3
86. 5
8 8.6

106. 5
9 8 .4
9 7.9

7 8.9
78. 2
7 7.6

111.5
110.1
108. 7
112.0

107.5
98. 2
9 5 .9
9 4 .0
9 4 .9
9 5 .4
9 5 .4
9 1 .7
9 1 .7

145.5
131-9
125.0

111.0
115. 5

108.4
111.5
112.7
111.9

111.0
119.3
124.1

83. 1

8 6.9
9 0 .9
98. 5
108.6
128.0
114.7

85.1
77. 2

121.8
109.0

124.4
124.0

87.5

112.6

125.4
125.8

Table A-9. Wholesale Price Indexes for Selected Processed Foods, 1954-66
(1 9 57 -5 9 = 100)

Year and month

Relative importance4 ............

A ll
processed
foods3

14.65

Cereal and
bakery products

A ll3

2.31

Bread
(N .Y . City)

0 .5 2

Meats

A ll3

3 .9 4

Choice
beef

0 .6 1

Pork
loins

0 .7 8

Dairy
products

2 .5 8

Canned
and
frozen
produce

1.09

Sugar
and con­
fectionery

1 .3 9

Coffee

0 .4 0

Animal
fats and
oils

0 .13

Annual averages
1954.............................................
1955.............................................
1956.............................................
1957.............................................
1958.............................................

9 7 .6
9 4.3
9 4.3
9 7 .9
102.9
9 9.2

9 6.5
9 8.5
9 7 .6
99.1
9 9 .9
101.1
103.2
105.1
107.6

1959.............................................
I9 6 0 .............................................
1961.............................................
1962.............................................
1963.............................................
1964.............................................

100.0
100.7
101.2
101.1
1 01.0

1965.............................................
1966.............................................

105.1

107.3
107.8
109.0

111. 5

115.4

8 6 .6
9 1.8
95.1
9 8 .2
9 9 .8
102.0
106.0
110.4
110.1
111.0

9 2 .4
8 3.5
7 9.8
9 1 .9
108.9
9 9.2
9 6 .8

9 4.3
9 0 .6
8 7.3
9 1.3
103.5
105.3
100.9
95.1
103.3
9 4.0

108.9
109.5

95.1
9 7 .8
9 1.5
8 9 .0
100.8

8 9 .9
9 6.8

117. 1

109.9

9 8 .7

111.6
9 3 .8
8 8 .4

9 4 .0
9 4 .0
9 6.2

9 7.2
98.1
100.4

101.5
107.2
9 1.3
9 7.7
9 7.2

9 8 .9
9 9 .8
101.3
105.0

9 6 .6
102.0
101.4
9 9.5
101.7

9 8.0

132.8
110.4

9 1.7
111.2

107.5
106.9
107.5
107.8
108. 5

103.9
104.8
102.1

111.8
109.0

9 7.2
9 8.4

1 37.9
100.4
103.5
112.1
106.9
81.1
8 6 .6
9 4 .4
8 8 .4
8 3 .9
9 5 .4
113.4

119. 5

118.5

104.8

110. 5

9 6 .9

113. 1

-1 .7
-.6

-2 7 .2
3. 1

9 7 .9
9 1 .6

9 8 .0

9 6.3
9 5.7
9 8 .9
100.8
100.4
101.8
101.2
102.2
118.4

119.3
112.9
100.3
8 6 .8
8 5 .0
8 3.2
80.1
79.2

Percent change in annual averages

1954-55 ......................................
1955-56 ......................................
1956-57 ......................................
1957-58......................................
1958-59......................................
1959-60 ......................................
1960-61 ......................................
1961-62 ......................................

-3 .4
0
3 .8
5.1
-3 .6
.8
.7
.5

1962-63.................... .................
1963-64......................................

-.1

1964-65 ......................................
1965-66 ......................................

2.1
-.9
1.5
.8
1.2
2.1
1 .8
2 .4

6 .0
3 .6
3 .3
1 .6
2 .2
3 .9
4 .2
-.3
.8

4.1

— 3
.5
1.1

-1 .9
.6

6 .1

5 .9

6 .9

-.1

-9 .6
-4 .4
15.2
18.5
-8 .9
-2 .4
-1 .8
2 .8
—6 .4
-2 .7
13.3
9 .0

-3 .9
-3 .6
4 .6
1 3.4
1 .7
-4 .2
-5 .7
8 .6
-9 .0
-4 .4
7 .7
2 .0

- 1 5 .9
-5 .8
14.8
5 .6
- 1 4 .8
7 .0
-.5
.7
-6 .4
.1
2 1.3
7 .5

0

0 .9
2 .3
-3 .8
5 .6
-.6

.3
.6

.9
-2 .6

-2 .5

-1 6 .9
8 .1
-5 .4
- 1 1 .2
-1 3 .5
-2 .1
-2 .1
-3 .7
-1 .1
2 2.7
1.2

9-2

2 .6

1 .4

-1 .5

108.3
107.8

1 01.9
100.3
100.7

110.0
110.0
108.1
108.0
108.7
109.2

2 .3
2 .8
.9
1.5
3 .7
2 .4
-.6
.6

-1 .9
2 .2
-3 .6
6 .0

3 .3
1 .9
-.4
1 .4
-.6
1 .0

1 5.9
-5 .6

8 .3
-4 .6
- 2 4 .1
6 .8
9 .0
-6 .4
-5 .1
13.7
1 8.9
-3

Monthly indexes

1965
J anuary....................................
February..................................I
M arch.......................................
A p r il........................................
M a y ...........................................
June...........................................
J u l y .....................................................

August......................................
September...............................
October....................................
November................................
December ...............................

102.2
102.1
101.8

108.2
107.9
108.1

102.3
103.3
106.1
106.6
106.7
106.7
106.9
107.6
109.4

108.3
108.3
108.5
109.3
108.8

110.3
111.8
111.5
110.6

111.8
112.1
112.2
112.6
113.0
114.0
115.5
118.9
118.9
118.7

109.1
109.4
110.6
111.2

108.9
108.9
108.9
108.9
108.9
108.9
108.9
107.9
108.9
108.9
112.8
112.8

8 9 .7
8 9 .9
9 0 .1
9 1.7
9 7 .6
106.6
107.5
107.1
105.8
105.5
105.8
112.1

9 0 .9
91. 1
8 9 .6
9 3 .7
9 8 .9
102.1
100.8
100.9
100.4
9 7.5
9 5 .7
9 9 .6

9 6.5
9 2.3
9 2.0
90.5
106.2
127.4
123.3
117.7
1 1 6 .2

119.9
121.6
131.3

107.5
107.5
106.8
107.1
107.8
108.5
109.1
109.4

100.9
100.4
101.5
101.8
100.4
101.8
104.7

109.1
108.9
108.8
109.4

110.4
111.3

105.4
105.1

109.2
108.8

110.9
113.0
115.0
114.8

104.7
105.2
104.8
104.8
105.4
104.9
104.5
102.3
103.7
105.7

109.4
110.1
109.7
109.3
109.3
109.4
109.8

105.9
105-8

9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4

106.4
107.6
110.0
116.7
107.4
108.4
115.9
114.1
119.7
122.1
115.8
116.4

1966
J anuary....................................
F ebruary..................................
March........................................
A p r il........................................
M a y ...........................................
June...........................................
J u l y ....................................................

August......................................
September................................
October....................................
Novem ber................................
Decem ber...............................

110.5
110.6
111.7
113.8
113.8
112.4
110.7
110.6

118.7
118.0

113.4
113.4
113.4
113.4
113.4
113.4
113.4
122.0
122.0
122.6
122.6

1 13.6

122.6

104.9

1 1 6 .0

112.8
110.5
109.8
108.6
108.5
110.5
111.9
108.0
103.4

9 9.2
101.0
1 04.4
104.4
9 8.2
9 6.0
9 5.8
9 7.5
100.2
9 6 ,6

133.2
135.7

121.3
117.9
122.3
122.6
125.0
115.8

114.9
116.5
119.8
124.0
124.2

9 4 .4
9 6 .8

105.8
107.6

122.6

117.9
108.7

124.5
122.3

125.8
126.2
121.8
115.2
107.7
105.8

110.9
111.4
111.6

9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8.4
9 8 .4
9 4.0
9 4 .0

112. 1
112.6

9 4 .0

105.6

9 3 .9

9 7.5

106.3
120.9
115.9
108.9

See footnotes at end of Table 10




59

Table A-10. Wholesale Price Indexes for Selected Industrial Commodities, 1954-66
(1957-59=100)
Textile products and apparel
Year and month

A ll 3
products

7.60

Relative importance4 .........

1.93

Manmade
fiber
products

1.27

Hide s, skins, and leather products

Apparel

3.741

Hides
and
skins

A ll 3

1.53

Leather

Fuels and power

Footwear

Refined
petroleum
products

A ll3

0.26

0.79

7.52

86. 9
86. 3

9 0.0
9 0.3
9 6.1
97.5
9 8 .3
104.3
107.0
107.4
108.6
108. 3
108. 5
110.7
118.2

9 4.5
9 7.4
102.7
9 8.7
9 8 .7
9 9-6
100.7
100.2
9 9.8
97.1
9 8 .9
101.3

0.15

Gasoline

3.89 |
1________ ^

Annual averages
1954 ........................................
1955
1956
1957
1958

........................................
........................................
........................................
........................................

1959
1960
1961
1962

........................................
........................................
........................................
........................................

1963 ........................................
1964 ........................................
1965..........................................
1966...........................................

100.6
100.7
100.7
100.8
9 8 .9
100.4
101.5
9 9.7
100.6
100. 5
101. 2
101.8
! 102.1

9 8.8
101.4
103.0
100. 5
9 7.9
101.6
104.4
100.4
101.7
100.3
99-6
100. 2
102.5

105. 7
106.8
100.4
101. 1
9 9 .0
100.0
9 7.5
9 3.4
9 3.9
9 3.9
9 5.8
9 5.0
89.6

9 8.9
9 8 .9
100. 0
100.0
9 9.7
100.4
101. 3
101.0
101. 5
101.9
102.8
103.7
105.0 ,

89-9
89.5
9 4.8
9 4.9
9 6.0
109-1
105.2
106.2
107.4
104.2
104.6
109.2
119.7

81.5
8 3.5
87. 2
8 1.5
8 4.8
133.8
100. 5
107.9
106.2
8 4.0
8 7.5
111.2
140.8

93. 1
9 1.9
94. 1
114. 0
103. 5
106. 0
K)8. 5
101.9
102.9
108. 1
121.0

9 4.6

92. 2
9 4.0
9 9.3
106. 4
9 7.0
9 6.5
9 7 .6
99-3
9 8.2
97. 2
9 2.7
9 5.9
99.5

9 7.3
97. 1
9 9-9
104.7
9 7 .8
9 7 .4
9 8 .3
9 8 .6
9 7 .3
9 6 .2
9 2 .0
9 4 .7
100.2

Percent change in annual eiverages

1954-55 ....................................
1955-56 ....................................
1956-57....................................
1957-58 ......... ■.........................
1958-59 ....................................
1959-60 ....................................
1960-61 ....................................
1961-62....................................

2 .6
1.6
- 2 .4
-2 .6
3 .8
2 .8

1.0
- 6 .0
.7
-2 .1
1.0
-2 . 5

•9
-. 1
.7
.6

-3 .8
1.3
-1 .4
-.7
.6

-4 .2
.5
0
2 .0
-.8

.3

2 .3

-5 .7

0. 1
0
.1
- 1 .9
1.5
1. 1
- 1 .8

1962-63...................................
1963-64 ....................................
1964-65....................................
1965-66.....................................

0
1.1
0

-0 .4

2.5
4 .4

.9
-.3
.5
.4

5 .9
.1
1.2
13.6
-3 .6
1.0
1.1
-3 .0

.9
.9

.4
4 .4

-2 0 .9
4. 2
27. 1

1.3

9 .6

2 6.6

-.3
.7

-6 .5
4 .0
5 7.8
-2 4 .9
7 .4
-1 .6

-0 .7
7 .9
-1 .3
2 .4
21. 1
-9 .2

2.4
2 .4
-6 .1
1.0

0 .3
6 .4
1.5
.8
6.1
2 .6
.4
1. 1

- 1. 0

- 0 .2
2 .9
4 .8
- 6 .6
-.4
.9
.3
-1 .3
- 1.1

1.9

-4 .6
3 .5

—4. 4
2 .9

3 .8

5 .8

9 5.2

9 2 .9
9 0 .8
9 1.4

-0 .1
3.1
5 .4
-3 -9
0
.9
1.1
-.5
-.4
- 2 .7

5.1

-.3
.2
2 .0

11.9

6 .8

2 .4

104. 2
103. 2
105.7
103.6
104.2
107.6
105.9
112.5
110.9
111.9
113.3
114.2

109. 1
109.1

9 8.5
9 7 .9

109. 1
109.7
109.7
109.8
110.0
110. 2
110. 3
113.6
113.7
113.8

9 7 .9
9 7 .6
9 8 .4
9 8 .7
9 8 .7
9 9 .0
9 9.2
9 9 .4
100. 3
100.6

123.3
122.4

114.6
115.0
115.4
118.2

125. 1
126.6
126.0

118.9
118.9
119.0

100. 5
100.3
9 9.9
100.0
100.4
101. 5
101.4

124.9
121.8

119.1
119.1
120.1
120.1

2 .0
5 .6
7. 2
-8 .8
-.5
1. 1
1 .7
- 1. 1

Monthly indexes
1965
J an u ary ............................... '
F e b ru ary .............................
M arch....................................
April ....................................
May ......................................
J une......................................
J u l y ......................................
August.................................
September...........................
O cto b er...............................
N ovem b er...........................
D e cem ber...........................

101. 5
101. 5
101. 5
101. 5
101.6
101.9
101.9
101.9
102. 1
102.0
101.9
102.0

9 9.5
9 9.6
9 9 .6
9 9.7

9 6 .9
96. 3
9 6 .4
96.1
9 6.0

9 9 .9
100.2
100. 3
100.4
100.6
100.8
101.0
101. 2

9 3.3
92.5
9 1.9

101.0
101.5
101.8

9 1.3
9 1 .0
9 0.8

102.3
102.6
102.8
103.0

9 0.5
8 9.9
9 0.0

9 5.9
9 5.7
9 4.7
9 4.2

103.1
103-1
103.1
103.1
103. 2
103.6
103- 8
104.1
104. 2
104. 3
104. 2
104.3

104.9
105.1
105.7
106.3
107.4
107. 7
108. 8
112. 2
111.3
113.3
113.6
114.6

86. 5
9 0.2
92. 1
9 6.3
105.9
103. 1
117. 4
133.4
124.9
125.6
126. 5
132.3

9 3 .9
9 4 .0
94. 1
9 5 .4
9 6.0
9 6 .0
9 6.4
9 6 .4 *
9 6 .6
98.1
9 8 .4

9 2.7
9 4.8
9 5 .9
9 5.9
9 5 .9
9 5 .4
9 5 .4
9 7 .6
9 7 .6

1966
J anuary...............................
F e b ru ary ..............................
March....................................
A p r i l ...................................
M a y ......................................
June......................................

101.9
102.0
102.1
102.2
102.2
102.2

July . . . . . . . . . . . . . . . .
August...................... ..
September.............
O cto b er...............................
N ov e m b er...........................
D e cem ber...................... .. .

102.4
102.4
102.2
102.2
102.1
101.8 i

See footnotes at end of Table 10.

60




103.3
103.1
103.3
103.0
102.7

90.1
8 9.6
88.6
88.1
8 7.7
86.9

104.6
104.7
104.7
104. 7
104.9
104.8
105.0
105.2
105.1
105.3
105.5
105.4

116.0
117.8
118.7
120.6
122.8
122.9
122.7
121.2
1 19 .9,
118.7
117.5
117.3

140.0
152.8
147.8
148.8
163.0
161.0
156.4
141.2.
134.2
120.8
114.3
109-2

116.6
118.0

117.5
114.1
116.2

120.3

102.0
102.2
102.6
102.7
102.4 ;

9 8.3
9 7 .8
9 7.2
9 7 .7
9 8.4
100.2
9 9.9
100.7
101.0
101. 3
101.3
100.2

9 7 .6
96. 5
9 5 .8
9 6 .9
9 9.2
102.3
101.8
102.9
102.9
102.9
102.9
100.3

Table A-10. Wholesale Price Indexes for Selected Industrial Commodities, 1954-66—Continued
(1 9 5 7 -5 9 = 100)
Chemicals and allied products
Industrial chemicals

Year and month
A ll3

Inorganic
Relative importance4. .........

6.25

0 .8 7

Rubber and rubber products
A ll3

Organic
1 .30

1.33

Crude
rubber

0.21

Lumber and wood products

Tires

0 .5 0

A113

2 .6 6

Lumber

1 .5 8

Plywood

0 .37

Millwork

0. 70

Manufactured
animal
feeds

1 .90

Annual averages

1954...........................................
1955...........................................
1956...........................................
1957...........................................
1958...........................................
1959.............................................
I9 6 0 ...........................................
1961..........................................
1962..........................................
1963...........................................
1964..........................................
1965..........................................
1966..........................................

9 7.3
9 6 .9
97.5
9 9 .6
100.4
100.0
100.2
99.1
97.5
9 6.3
9 6.7
9 7.4
9 7 .8

9 3.3
94.5
97.2

9 6.0
9 6 .0
9 8 .6

9 8 .9
100.2

100.5
9 9.8
9 9.8
9 9.6
9 6 .0
9 2 .6
90.1
8 8.7

100.9
101.8
102.4
102.4
102.2
103.0
1 0 4 .6

106.0

8 8 .9
89.1

8 7 .6
9 9.2
100.6
100.2
100.1
9 9 .7
9 9.9
96.1
93.3
9 3 .8 '
92.5
9 2 .9
9 4.8

8 6.4
110.1
1 0 3 .0

9 9.2
94.1
106.7
109.3
9 6.3
9 3 .6
9 1 .9
9 0 .6
9 0 .0
89. 2

8 7 .9
9 7 .6
102.4
101.4
102.5
96.1
92.3
9 1 .6
86.1
89.1
8 7 .9
8 9.2
9 2.6

9 7 .6
102.3
103.8
98.5
9 7.4
104.1
100.4
9 5 .9
96.5
9 8 .6
100.6
101.1
105.6

9 6.4
102.4
104.6
98. 5
9 7 .0
104.5
9 9 .8
9 4 .7
96.5
9 8 .9
100.7
101.9
108. 5

105.0
107.4
103.5
98.1
9 8.9
103.0
9 7.8
9 5.7
9 2.4
93.5
92.3
9 2.3
9 2.8

9 9.8
9 8 .4
9 8.7
98.1
9 8.0

132.8
104.8
9 9 .7
9 3.2

108.5
107.8
110.0

102.9
104.0
9 6.4
104.6
110.6
116.4
113.9
116.3
126.6

-1 .4

-2 1 .1

.3
-.6

-4 .9
-6 .5
10.4
1.1

103.9
104.5
101.9
101.8
104.0

Percent change in annual averages
1954-55 ....................................
1955-56....................................
1956-57....................................
1957-58....................................
1958-59....................................
1959-60....................................
1960-61 ....................................
1961-62....................................
1962-63 ....................................
1963-64....................................
1964-65 ....................................
1965-66....................................

-0 .4
.6
2 .2
.8
-.4
.2
-1 .1
-1 .6
-1 .2
.4
.7
.4

.9
.6

1 .9
-.7
0
-.2
-3 .6

13.2
1 .4
-.4
-.1
-.4
.2
-3 .8

-.2
.8
1 .6
1 .3

-3 .5
-2 .7
-1 .6
.2
.2

3 .3
-5 .5
-1 .4
.4
2 .0

1.3
2 .9
1.7
1 .3
.7

0

0

2 .7

2 7.4
-6 .4
-3 .7
-5 .1
13.4
2 .4
- 1 1 .9
-2 .8
-1 .8
-1 .4
-.7
-.9

1 1.0
4 .9
-1 .0

1.1
-6 .2
-4 .0
-.8
-6 .0
3 .5
-1 .3
1.5
3 .8

4 .8
1.5
-5 .1
-1 .1
6 .9
-3 .6

6 .2
2.1
-5 .8
-1 .5
7 .7
-4 .5
-5 .1
1 .9
2.5
1 .8
1.2
6. 5

2 .3
-3 .6
-5 .2
.8
4 .1
-5 .0
-2 .1
-3 .4
1.2

101.9

100.8
101.4
101.3
101.0
101.0
101.1
101.2
102.5
103.1
103.0
103.0
103.4

94.5
9 3.0
9 2.2
9 1.9
91.3
90.5
9 1 .0
9 4 .6
9 3.3
9 1 .6
9 1.7
92.1

102.8
103.7
105.6
108.4
109.6
107.7
106.6
106.2
105.9
104.8
103.0

104.3
105.6
107.2
110.8
113.2
112.0
110.5
110.2
109.5
108.0
105.6

102.5

104.5

9 3 .9
9 4.0
9 7.7
102.4
100.3
9 2.2
91.5
9 0.0
8 9.2
88.1
8 6.9
87.4

-4 .5
.6
2 .2
2 .0
.5
4. 5

-1 .3
0
.5

-.1

6 .0
.6
-2 .5
-.1

2.2
4 .3
-.6
2 .0

-7 .3
8.5
5 .7
5 .2
-2 .1
2.1
8 .9

Monthly indexes

1965
January................................
F ebruary.............................
March......................................
A p r il....................................
M a y ......................................
June.....................................
J u ly ................. : ...........................
August..................................
September...........................
October...............................
November...........................
Decem ber...........................

9 7.3
97.5
9 7.5
9 7 .6
9 7 .6 '
9 7.4
9 7 .4
97.1
9 7.2
9 7.6
97.5
9 7.6

104.4
104.6
104.6
104.7
104.7
104.5
104.5
104.1
104.1
105.1
105.2

9 7.6
9 7.6
9 7 .6
9 7 .6
97.7
9 7 .6
9 7 .9
9 7 .9
9 8 .0
9 7.9
9 8 .0
9 8 .2

105.1
105.1
105.3
105.3
106.3
106.2
106.6
106.2
106.3
106.3
106.4
107.0

105.1

8 8.6
8 8.6
8 8.4
8 8 .8
8 8.8
8 8 .8
89.2
8 9.2
8 9.2
89.3
89.2
8 9.2

9 2.3
9 2.2
9 2.2
9 2.3
9 2 .9
93.1
9 3.0
9 3.3
9 3.3
9 3.4
93.5
93.5

9 0.7
9 0.7
9 0 .6
9 1.6
9 1.8
90.1
89.1
8 8 .6
8 8.7
8 9.0
8 9.3
8 9.6

8 7.7
8 7.7
8 7.7
8 7.7
8 8.9
8 9.4
8 9.4
9 0.3
90.3
90.3
90.3
9 0.3

100.8
100.8
100.7
100.5
100.4
100.3
100.5
101.8
102.0
101.6
101.6

107.7
107.5
107.6
107.6
107.9
107.8
107.8
107.8
107.8
107.8
107.8
107.9

115.1
114.3
114.2
115.5
112.9
116.6
118.8
116.9
116.8
116.2
119.9
118.6

1966
January ...............................
February.............................
March....................................
A p r il....................................
M a y ......................................
June........... - ........................
J u l y ...............................................

August..................................
September...........................
October...............................
Noyember...........................
Decem ber...........................

88.5
8 8 .6
8 8 .6
89.1
89.2
89.1
89.2
8 9.2
89.2
8 9.3
8 9 .4
8 9 .6

9 3.7
94.1
94.3
9 5.4
9 5.4
9 5 .4
95.1
95.1
9 4.7
9 4 .6
9 5 .0
9 5.0

9 0.0
9 1 .0
91.2
9 0 .0
9 0.0
89.5
8 9.0
8 8.8
8 7 .9
8 7.4
8 7.9
8 7.6

9 0.4
9 0.4
9 0 .4
9 3 .7
9 3.8
9 3 .8
93.2
9 3.2
9 2.7
9 2.7
9 3 .2
9 3 .2

107.9
108.4
109.3
109.6
110.4
110.6
110.7
110.9
110.9
110.8
110. 3
110.3

121.8
124.8
119.6
119.2
123.1
124.1
132.6
133.6
132.3
128.1
128.4
132.0

See footnotes at end of Table 10.




61

Table A-10. Wholesale Price Indexes for Selected Industrial Commodities, 1954-66--Contimued
(1957-59=100) '
Machinery and motive products
Machinery and equipment

Year and month

Motor
vehicles

A ll3
A ll3

Relative importance4.............

17. 30

( 5)

E lectrical

4 .35

Non­
electrical
( 5)

Metal­
working
1. 27

General
purpose
1.98

Construc­
tion
0 .8 6

Agricul­
ture
0 .8 8

4 .85

Passenger
cars

3 .02

Con­
struction
materials

( 5)

Annual averages

1954.............................................
1955.............................................
1956.............................................
1957.............................................
1958.............................................
1959.............................................
1960.............................................
1961.............................................
1962.............................................
1963.............................................
1964.............................................
1965.............................................
1966.............................................

8 3.2
8 5 .8
92. 1
9 7.7
100. 1
102. 2
102.4
102.3
102.3
102.2
102.9
103. 7
106.0

82. 1
8 4.6

8 3.1
8 4 .4

9 1.5
9 7 ,9
100.0
102. 1
102. 9
102. 8

9 1.1
9 8.1
100.2
101.7

102.9
103. 1
103. 8
105.0
108.2

101.3
100.0
9 8 .4
9 7 .4
9 6 .8
9 6 .8
9 9 .0

8 1 .4
8 4.8
9 1 .8
9 7 .7
9 9.9
102. 5
104. 2
104. 9
105.7
106.7
108.3
110. 1
114.0

78. 1
8 3 .6
9 1 .7
9 7.9
9 9.8

7 9.6
83. 2
9 1 .7

102.3
105.5
107.0

9 7 .9
9 9 .4
102.7
103.6
102.8

109.3
109.8
112.6
116.9
123.2

103. 3
103.8
104.4
105.1
109.7

7 9.3
8 2 .6
8 9.5
9 6.3
100.1
103.6
105.8
107.5
107.J8
109.6
112.4
115.3
118.9

88. 1

8 5 .6
8 8 .2
9 3 .2
9 7 .2

8 8 .9
9 2 .0
9 6 .3
100. 3
103.4
105.4
107.4
109.5
111. 1

100. 3
102. 5
101.0
100.8 .
100.8
100.0

112.9
115.1
118.5

100.5
100. 7
100.8

0 .9
3.5
4 .7
4 .2

3 .0
5 .7
4 .3
3 .2
2. 2

8 6 .4
89. 1
9 3 .6
9 7 .4
100. 2
102.4
101. 2
100.7
9 9 .8
9 9 .0
9 8 .8
98. 1
9 7.2

9 1.1
9 5.1
9 9.0
9 9 .0
9 8 .9
102.1
100.5
9 8 .6
9 8 .3
9 8.5
9 9 .6
100.8
104.0

Percent change in annual averages
1954-55 ......................................
1955-56......................................
1956-57 ......................................
1957-58......................................

3.1
7 .3
6 .1
2 .5
2. 1
.2
-. 1
0
-. 1
.7
.8
2 .2

1958-59................'.....................
1959-60 ......................................
1960-61......................................
1961-62......................................
1962-63...............•......................
1963-64......................................
1964-65......................................
1965-66......................................

3 .0
8 .2
7 .0
2. 1
2. 1
.8
-. 1
.1
.2
.7
1. 2
3.0

1.6

4 .2

7 .9
7 .7
2. 1
1.5
-.4
-1 .3
-1 .6
-1 .0
-.6
0
2.3

8 .3
6 .4
2 .3
2 .6
1.7
.7
.8
.9
1.5
1.7
3.5

7 .0
9 .7
6 .8

4 .5
10.2
6 .8

4 .2
8 .4
7 .6

1.9
2.5
3. 1
1 .4
2.1
.5
2 .6
3 .8
5 .4

1.5
3 .3
.9
-.8

3 .9
3.5
2.1
1.6
.3
1.7
2 .6
2 .6
3-1

.5
.5
.6
.7
4 .4 •

3.1
1.9
1 .9
2 .0

-1 .5
-.2
0
-.8

1.5
1 .6
1.9
3-0

.5
.2
.1

3-1
5 .1
4 .1

4 .4
4 .1
0

2 .9
2 .2
-1 . 2

-. 1
3 .2
-1 .6

-.5
-.9
-.8
-. 2
-.7
-.9

-1 .9
-3
.2
1.1
1.2
3.2

Monthly indexes
1965
J anuary..................................
F ebruary...............................
March......................................
A p r i l ......................................
M a y ........................................
J u n e .................................... •
J u ly ........................................
A ugus t..................................
September.............................
O ctober..................................
Novem ber.............................
Decem ber............................. ,

103.3
103. 5
103. 5
103. 7
103.7
103. 8
103. 7
103.8
103. 8
103.9
104.1
104. 2

104.4
104.5
104. 5
104. 8
104. 9
105.0
104.9
105.0
105. 1
105.2
105.5
105.7

9 6 .7
9 6.8
9 6.8
9 7.0
9 7.1
9 6 .9
9 7.0
96. 7
9 6 .6
9 6 .6
9 6.5
9 6 .6

106.0

9 7 .0

106. 5
106.9
107. 2
107.8
108. 1
108.3
108.5
108.9
109.4
110.2

9 7 .8
9 8 .2
9 8 .4
- 98. 9
9 8 .8
9 9.0

113.5
113.9
114. 1

9 9.1
9 9.2
! 9 9.5
100.7

110.7

1 101.5

109.3
109.5
109.6
109.7
109.9
109.9
109.9
110. 3
110. 5
110.7
111. 3
111.3

115.3
115.6
115.6
115.7
116.2
116.4
116.5
117.4
117.9
118.3
118.6

104. 1
104.4
104.4
104. 2
104. 7
104. 7
104.7
105.3
105.7

113.8
114.3
114.5
115.0
115.1
115.2

118.9

106.3
106.5
106. 5

115.3
115.6
115-6
115.8
116.4
116.5

111.6

119.6

106.8

116.9

112.0
112.4
112.8

120.8
121.0
121.0

106.8
107. 3
108. 5

114.5
114.9
115.5
116.1

122.5
123.5
123.5
124. 0
125.0
125.6
126.0

109.3
109.8
110.0
110.6
111. 1
111.8
112.2

116.4

126.3

112.4

117.5
117.9
118.5
118.9
118.9
118.9
118.9
119.4
119.8 i
120.6
121.0

114.3
114.4
114.6
114.6
114.7
114.7
114.9
114.8
115.0
114.9
116.8
117.0

100.8

;

100.9
100.8
100.8
100.8
100.7
100.7
100. 7
100. 5
100.5
100. 5
100. 5

9 8.5
9 8.5
9 8 .3
9 8 .3
9 8 .2
98. 1
9 8.1
9 8.1
9 7 .9
9 7 .8
9 7 .8
9 7.7

100. 2
100. 3
100.2
100.3
100.7
100.7
100.8
101.2
101.2
101.2
101.3
101.4

1966
J anuary..................................
February...............................
March......................................
A p r il...................................
May..........................................
June........................................
J u ly ........................................
August....................................
September.............................
October.................................
November.............................
Decem ber.............................

104.4
104. 7
105.0
105.2
105.8
105.9
106.0
106. 2
106. 3
107.1
107.7
108.0

See footnotes at end of Table 10.

62




117.3
117.8
118.0
118.1
118. 2
118.4
118.5
118.3
118.2
118.5
120.4
120.8

100. 5

9 7.7

100.4
100.3
100.2
100.9
100.7
100.7

9 7.5
9 7 .4
9 7 .2
9 7 .0
9 6.7
9 6 .8

100.5
100. 1
101.7

9 6 .3
9 5 .7
9 8 .0

101.7
101.7

9 8 .0
9 8 .0

101.9
102.4
103. 2
104.3
105.1
104. 8
104.6
104.5
104. 3
104.3
1 04.0
104.0

Table A-10. Wholesale Price Indexes for Selected Industrial Commodities, 1954-66--Continued
(1957-59=100)
Metals and metal products

Furniture and other household durables
Fabricated

Year and month

Iron
and
steel

A ll3

13. 18

Relative importance4 ...........

Steel
mill
products

4 .6 6

( 5)

Foundry
and forge
products

0 .7 9

Nonferrous
metals

Structural
products

3.16

1.90

Nonstructural
products

A ll3

1.80

3.81

86. 5
88. 1
9 2 .9

9 3.9
9 4.3
9 6.9
9 9.4
100.2
100.4
100. 1

Household
furniture

Appliances

0 .9 5

0 .8 8

T V , radios,
and phono­
graphs

0.41

Annual averages
1954.............................................
1955.............................................
1956.............................................
1957.............................................
1958.............................................
1959.............................................
I96 0 .............................................
1961.............................................
1962.............................................
1963.............................................
1964.............................................
1965 ...........................................
1966.............................................

8 4.3
9 0.0
9 7.8
9 9.7

78. 7
8 3 .2
9 1 .6

78. 2
8 1.8
88. 7

8 0 .0
8 2 .0
9 0 .4

9 2.9
106.7
116.7

9 8 .4

9 7 .4

102.8

9 9.1
101.2

9 9 .9
101.8
100.6
100. 7

9 7.2
100.6
102. 2
102. 1
101. 7
101.4
102.0
102.8

100. 3
102. 3
103.1
103.4
103.6
103.6
104. 7
106. 1
108.0

95.5
101.8

101. 3
100.7
100.0
100.1
102.8
105.7
108. 3

9 9.3
99.1
100.5
101.4
102. 3

103.3
104.7

8 7 .6
9 1 .6

103.9
100.4
9 9.2
9 9.1
105.9
115. 2
121. 0

9 9.1
100.1
100. 1
9 9 .8
100.8
9 9 .0
98. 2
9 8 .2
9 9 .3
101. 2
103.9

9 9.5
100.2
100.4
100.6
103. 1
103. 9
105.1
108. 5
109.4
111.6

9 2 .0
9 2.5
9 6.6

104.4
101.8
100. 5

9 9.5
9 8.8
9 8.1
9 8.5
9 8.0

9 9 .4
9 9.8
100.7
101.6
102.8
103. 8
104.6

100.5
9 9.8
9 9.7
9 7.0
9 5.2
9 4.0
9 1 .8

105.3
106.2

9 1.3
8 9.2

99. 1

109. 1

89.1

0 .4
2 .8
2 .6
.8
.2

.5
4 .4

( 6)
99. 1
9 9 .2
100.6
100.5
9 8 .9
9 7 .3
9 5.3
91. 1
8 8.6
87. 2
8 5 .2
8 3 .6

Percent change in annual averages
6 .8
8 .7

1954-55 ......................................
1955-56......................................
1956-57......................................
1957-58......................................

1.9
-.6
2.1
.1
-.6
-.7
.1
2 .7
2 .8
2 .5

1958-59......................................
1959-60 ......................................
1960-61......................................
1961-62......................................
1962-63......................................
1963-64 ......................................
1964-65......................................
1965-66 ......................................

5 .7
10. 1
7 .4

4 .6
8 .4
9 .6

1.5
1.9
-1 . 2
.1
-1 .4
-. 2
1 .4
.9
.9

3.5
1.6
-. 1
-.4

2.5
10.2
7 .7
3 .0
2 .0
.8
•3
.2

-.3
.6
.8

0
1. 1

•5
1 .4

1.3
1.8

14.9
9 .4
- 1 1 .9
-7 . 1
• 6 .6
2.1
-3 .4
-1 . 2
-. 1
6 .9
8 .8
5.0

4 .6
8 .2
1.0
0
-3
1.0
-1 .8
-.8
0
1.1
1.9
2 .7

1.8
5 .4
7. 1
.7
.2
.2
2 .5
.8
1. 2
3 .2
.8
2 .0

-.3
-.6
-.7
-.7
.4
-.5
1. 1

2 .9
.4
.9
.9
1. 2
1.0
.8
.7
.9
2 .7

-2 .5
-1 .3
0
-.7
-. 1
-2 .7
-1 .9
-1 .3
-2 .3
-.5
-2 .3
-. 1

( 6)

0.1
1 .4
-. 1
-1 .6
-1 .6
-2 . 1
-4 .4
-2 .7
-1 .6
-2 .3
-1 .9

Monthly indexes
1965
January..................................
February. . ...........................
M a r c h ....................................
A p r il......................................
M a y .........................................
June.........................................
J u ly .........................................
August....................................
September.............................
O ctober..................................
Novem ber.............................
Decem ber..............................

104. 5
104. 6
104. 8
105.2
105.7
105.9
105.8
106. 2
106.2
106.3
106.7
106.6

101.4
101.2
101.3
101.4
101. 5
101. 3
101. 5
101.4
101.2
101. 2
101. 3
101.7

102.9
102.9
103.0
103. 0
103. 2
103. 2
103.4
103. 5
103.5
103. 7
103.6
103.9

105.6
105.4
105.6

111.5
111.8

100.3
100. 2

108. 3
109.0

9 8 .3
9 8 .2

105.9
105.8
106.1

112.3
113.4
115.2
116.2

106. 3
106.3
106.5
106.6
106.6
106.7

115.5
116. 5
117.0
117.4"
1 1 8 .1
111. 2

100.3
100.8
101.2
101.2
101.4
101.7
101.8
101.8
102.0
102.0

109. 1
109. 2
109. 2
109. 2
109. 1
109.9
109. 9
109.8
109.8
109.7

9 8 .3
9 8.0
9 8.0
9 8.0
9 7 .8
9 7 .7
9 7 .7
9 7.8
9 8.0
9 8.2

107. 1
107. 2
107. 2
107. 2
107.4
107.4
107.5
107.8
108. 1
108.2

118.3
119.5
120.8
122.1

102.3
102.6
103.1
103. 7
103. 8
104. 1
104.2
104. 2
104.4

110.0
110. 5
110.9
110.9
110.9
111.2
111.2

9 8 .3
9 8 .4
9 8 .4
9 8 .6
9 8 .9
9 8 .9
9 9 .0

112.3
112.4
112.7

9 9.1
9 9 .2
9 9 .7

113.1
113.2

100. 3
100.4

106. 1
106.0
106.0
106.0
106.0
105.9
105.9
106.1
106. 2
106.4
106.6
106.7

9 0.2
9 0.0
9 0.0
8 9.4
8 9.2
8 9.4
8 9.2
8 8.6
8 8 .6
8 8.6
8 8 .6
8 8.8

8 6 .4
8 5.9
8 5.9
8 5 .9
8 5.9
8 5 .9
8 4 .6
8 4 .4
8 4.4
84.5
84. 5
8 4.5

1966
J anuary..................................
February................................
March......................................
A p r il......................................
M a y ........................................
June........................................
J u ly ........................................
August....................................
September.............................
October..................................
November.............................
Decem ber.............................

107.0

102.0

107.5
108.0
108.2
108.4
108.7
108.8

102. 2
102. 3
102.0
101.8
102. 0
102. 2
102.7

108.5
108.4
108.6
109.0
109.0

102. 5
102.5
102. 8
102.9

104. 1
104. 2
104. 3
104. 3
104.3
104. 5
104. 5
105.0
105. 1
105.1
105. 2
105.3

122.5
123.2
122.9
120.4

110. 1

119.9
120.3
121.0

1 0 4 .8

110.3

120.5

104.9

104.6

8 3.9

107. 0
107. 2
107.2
108. 3
108.9
108.9
109. 1
109.4
109.8

8 9 .0
89-0

110. 3

8 8 .9

8 3.8

111.5
111.8

89. 2
89.2

8 3.8
8 3 .8

8 8 .8

83-8
8 3.5
8 3.5
8 3.5
83.5
8 3.5
83.1

88.7

6 3 -3

89.1
8 9.3
8 9 .4
8 9.4
89. 1

See footnotes at end of Table 10.




63

Table A-10. Wholesale Price Indexes for Selected Industrial Commodities, 1954-66—Continued
(1957-59=100)

Pulp, paper, and allied ]>roducts

Nonmetallic mineral products

Year and month
A ll 3

Relative importance4 .........

4. 69

Woodpulp

0. 23

Wastepaper

0. 12

Paper

1. 27

Paper boxes
and
containers
1. 32

Tobacco products and
bottled beverages

Concrete
A ll3

2 .78

A ll3
Ingredients;

Products

0 .7 0

0 .8 7

2.51

Tobacco
products

Non­
alcoholic
beverages

0 .9 6

0 .5 4

Annual averages
1954..........................................
1955..........................................
1956...........................................
1957...........................................
1958...........................................
1959..........................................
1960...........................................
1961...........................................
1962...........................................
1963...........................................
1964...........................................
1965...........................................
1966...........................................

8 8 .8
91. 1
97. 2
99-0
100. 1
101.0
101.8
9 8 .8
100.0
9 9 .2
9 9.0

91. 1
9 3.8
9 7.8
98. 7
100.7
100.7
100. 2
9 5.0
9 3.2
9 1.7
96.1

8 6.8
119.5
121.2

97.5
92. 2
9 2.4

8 8.9
91. 1
9 6 .4
9 9.6
9 9 .8
100.6
102.0
102. 2
102.6
102.4
103.6

9 9 .9
102.6

98. 1
9 8 .0

9 9 .4
105.0

104. 1
107.3

8 3.3
9 5.3
121.4
9 0.3
80. 5

8 7 .4
8 9.2
9 6.8
99.1
100.2
100.6

8 8.8
9 1.3
9 5.2

99. 1

9 8 .9
9 9.9
101. 2
101.4
101.8
101.8
101. 3
101. 5

9 8.7
101. 1

101. 7
102.6

103.9
9 8.4
101.8
101.8

8 7 .4
90. 2
94. 3
98. 2
100.4
101. 3
102.7
102.8
103.2
103.0
102.8
103. 2
103.9

9 1 .8
9 2.7
9 6.0
9 8.7
100.0
101. 3
102.4
102. 5
102. 6
101.7

9 3 .8
9 4.6
95.1
9 8 .0
9 9 .7
102.2
102.5
103.2

9 3 .3
9 3-4
9 3.5
9 7 .4
101.0
101.7
101.9
102.0
102. 1

9 1-7
9 5 .4
9 5 .6
9 6 .0
96. 1
107.8
110. 3
112.8

100.9
101. 5
103.0

104.1
106. 1
107.4
107.7
109-6

109- 6

116.9
122.6
127.0
128. 3
130. 5

104.5
106.0
106. 2

Percent change in annual averages
1954-55....................................
1955-56....................................

2 .6

3.0

37.7

6. 7

4. 3

1.4

1956-57....................................
1957-58....................................

1.9
1. 1

1958-59....................................
1959-60....................................
1960-61....................................
1961-62 ..................................

-9
.8
-2 .9
1. 2
-.8
-.2
.9
2 .7

•9
2 .0
0

1962-63....................................
1963- 64 ..................................
1964-65....................................
1965-66....................................

-. 5
-5 .2
-1 .9
-1 .6
4 .8
2. 1
-. 1

-31. 3
14.4
2 7.4
-2 5 .6
-1 0 .9
21. 1
-5 .4
.2
7 .6
5 .6

2.5
5 .8

2. 1

3.3
.2
.8
1.4
.2
.4
-. 2
1. 2

2 .4
1. 1
.4

■5
3. 1

8 .5

3. 3
- 5 .3
3.5
0
-2 .7
-.4
2. 4

2 .8
4 .3

3.2
4 .5

1.0
3 .6

0 .9
•5

0. 1
. 1

4 .0
.2

3 .9
1.0

4.1
2 .2
.9
1.4
.1
.4
-. 2
-. 2
.4
.7

2 .8
1.3
1. 3
1. 1
.1
.1

3 .0
1.7

1-3
.2
.4
0

4. 2
3 .7
.7
.2
.1
.1
2 .4
1 .4
.2
3 .2

.4
.1
12.2

-. 5
.2
.2
.9

-.9
-.8
.6
1. 5

2.5
•3
.7
.9
1.9
1. 2
•3
1.8

2 .3
2 .3
3-6
4 .9
3 .6
1 .0
1.7

Monthly indexes
1965
January...............................

9 9 .0

98. 1

96. 1

103.7

9 7 .9

101.7

103. 2

101. 3

9 9 .0
99-5
9 9 .8
100.0
100. 0

9 6.0
96.2

103-8
103.8
1 0 3 .9
104. 0
104. 1
104. 1
104. 1
104. 1
104. 5
104.8
104.9

9 8.4
9 8.6
98. 7
9 9.2
9 9 .4

101.8
101.9
101.9
101.9
102.0
101. 7
101.6
101.6
101.6
101.6
101.6

103- 2
103. 2
103.2
103- 2
103- 1
103. 1
103- 2
103. 2
103. 4
103.4
103.4

101. 2
101. 2

9 7.3
100. 3
9 8.0

9 7.9
9 8 .9
99-0
9 9.0
9 9.0
98. 4

100.9

98. 1
98. 1
98. 1
98. 1
98. 1
98. 1
98. 1
98. 1
98. 1
98.1
98. 1

J anuary . . . . . . . . . . . . . . .
F ebruary.............................
M a rc h .................................
A pril . . . . . . . . . . . . . . . . .
May ........................... ..

101. 2
101. 3
101.8
102. 3
102. 7

9 8.0
9 8.0
9 8.0
9 8.0
9 8.0

105.8

105. 2
105.4
105.4
106.0
107. 1

100.0
100. 1
101. 2
101. 2
101.0

102.0
102. 1
102. 1
102. 3
102.4

103.6
103.7
103. 8
103.8

J u n e ............................... ....

103.0
103.2

9 8.0
9 8 .0
9 8 .0
9 8.0
9 8 .0
9 8 .0

112.7
113.2
106.7

108.0
108.2
108.4
108.4
108.4
108. 5
108. 5

101.0

102.5
102.7
102.7
103.0
103.2
103. 3
103.3

F ebruary ...........................
M a r c h .................................
A p r il....................................
May ...................................... •
J u n e ....................................
July . . . . . . . . . . . . . . . . . .
August...................................
September.............................
October...............................
November...........................
December...........................

9 9 .9
99-9
100. 0
100.5
100.8

9 8.3
97.5
9 7.3
104. 5
107.0
104.6

106. 1

128. 1

106. 1
106. 1
106.7
107.4
106. 1
106. 1
106. 1
106. 1
106. 1
106. 1
106.0

128. 1
128.1
128. 1
128. 1
128. 1
128. 1

101.3
101. 3
101.6
101.7
101. 5
101.6
101.6
101.8
101.8

107.5
107. 6
107. 5
107.8
108. 1
107. 6
107.6
107.6
107. 7
107.7
107. 7
107.9

102.0
102. 1
102.2
102.7
102.7

108. 1
108.0
109.2
109.4
109.4

106.6
106.6
109.8
110. 2

103.0

109.8
110.0
110.1
110.1
110. 1
110.1

110.3
110.3
110.3
110. 3
110. 3
110.2
110. 3

128. 5
128. 5
128.5
128. 5
128. 5

1966

J u ly ..................• • • • • • • • •
August....................
September...........................
October .............................
November . . . . . . . . . . . . .
Decem ber........................ .

103. 2
103.1
103.1
103.0
103.0

9 8.0

105.5
108. 7
110.3
112.0

102.9
9 8.8
9 2 .7
9 0 .5

^ ru d e foods for further processing.
Includes a ll foods used directly by consumers; for example, eggs, fresh produce,
and milk.
^Includes groups not shown separately.

64




101.2
101. 2
101. 3
101.4
101. 5
101. 5

103. 7
103.6
103.7
103.8
103.9
104. 3
104.2
104.3

103. 1
103-3
103.6
103. 5
103. 5
103-9

110.3

110.3

128.5
128. 5
128. 5
128. 5
128. 5
131.0
131-8
132.2
132.2
132.2
132.2
132. 2

4Relative importance as of December 1965. The relative importance of an item is
its value or weight in the index expressed as a percent of the all-commodities WPI.
5This is a special index for which relative importance is not computed. Special
indexes combine appropriate segments of pertinent commodity groups.
^Indexes not available for 1954.

R E G IO N A L O F F IC E S AN D D IR E C T O R S

NEW E N G L A N D R E G IO N
W e n d e ll D. M a cD o n a ld
1 6 0 3 -A F e d e r a l B u ild in g
G o v e r n m e n t C e n te r
B o s to n , M a s s . 022 03
P h o n e : 2 2 3 -6 7 2 7 (A r e a C o d e 617)

N O R T H C E N T R A L R E G IO N
T h o m a s J. M c A r d le
219 S. D e a r b o r n S tr e e t
C h ic a g o , 111. 6 06 04
P h o n e : 3 5 3 -7 2 2 6 (A r e a C o d e 312)

M ID D LE A T L A N T IC R E G IO N
H e r b e r t B ie n s t o c k
341 N inth A v en u e
N ew Y o r k , N .Y . 10001
P h o n e : 9 7 1 -5 4 0 1 (A r e a C o d e 212)

M O U N T A IN P L A IN S R E G IO N
E llio t t B r o w a r
911 W alnut S tr e e t
K a n s a s C ity , M o. 64106
P h o n e : 3 7 4 -2 3 7 8 (A r e a C o d e 816)

SO U TH ERN R E G IO N
B r u n s w ic k A . B a gd on
1371 P e a c h t r e e S t., N .E .
A tla n ta , Ga. 30309
P h o n e : 5 2 6 -5 4 1 6 (A r e a C o d e 404)

W E S T E R N R E G IO N
C h a r le s A . R o u m a s s e t
450 G old en G ate A v e . B o x 36017
San F r a n c i s c o , C a lif. 94102
P h o n e : 5 5 6 -3 1 7 8 (A r e a C o d e 415)




* U.S. GOVERNMENT PRINTING OFFICE : 1968 0 - 2 9 9 - 6 8 8