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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 • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • # 2 $ $ J J&SfeSiiSry Gc • • ®l i b * # C l b i c J t / • • • • • • • • • • • i i N M i m i • • • • • • • • • • • • • • • • • • • • • • W M W M fW W toil • • • •••• • • •• • • • • • • • • • • •••• •••• • • • • • • • • • • • • • • • • • • • • • • ••• ••• ••• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •• • • • • • • • • • • • • • • • • • • • • -- -* m m m m m m * * : z # &■&^•^####^####' %< ' *••#•" * ' * * * ^ v * ***? ? . ? * * * # * # * • # • # # &0 0 0 0 0 0 # # # # # # # •••!•••••••#••••••••••••• •••••••••••••*•••••••••••••*••••••••••••?? *. m. m & t • • • %%m %0 • %» ##*#♦♦•• %•••••••••••• • : : : : : : : : :»-: : : : : : : : : : : : : : : : : : : : : : : : ••••••••••••• f ; *, :•••••••• • •••-« *<*#*••••# ►•••• : : : : :'„*■$*•*''* ::::: : : : : : : : : : : : : : : : : : : : : : : : :<8&#: :®•:*: : : : : : : : :*:S' * :«*:' ' :' »<**» «•••••••••••••*••••••••** : : : : : : : : : : : : : ::: WWWWWWWWWWWW^ « WW* **” ***’ !•«•« «••••••••••••*> __•••###♦•* : : : : : : : : : : r : j : : : : : : « : n : i : : : :___ : : : :_____.•«•••••>*-"•>•* :::: 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 1 2 5 7 14 14 16 17 19 19 20 20 22 23 23 29 29 30 31 31 33 34 35 37 37 44 44 45 45 46 46 47 vi 2 4 4 6 14 23 35 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 .................................................................... 9 12 18 24 26 38 40 43 51 52 53 54 55 56 57 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 . •••••••• •••••••• • ••• - • • • • • • • • • MM MM •••• MM ' ' •••• ••••••••••••• & •••••••••••••f •••••••••••••» •••••••••••» » ' - •••••••• •••••••• •••••••• ••••••••••• . . . : : : : : : : : : : : : : : : : : ................................................................................................... • • • •••••••••• •••• MM : : : : : : : : : : : : : •••• • : : : : : : : : : : : : : • • ••••••••••• : : : : : : : : : : : : : : : : : ......................................... •••• •••• ••••••••••••• ::::::::::::: •••••••• ••••••••••• •••••••••«••••••• •••• ::::::::::: ::::::::::::: ::::::::::::: : : : : : : : : : : : : : ••••••••••••• •••••• 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