New Price Escalation Seen Before Year Ends
Living costs have been holding steady since early fall but another round of price inflation is just ahead.</br></br>ÛÏItÛªs only a breathing spell,Û a top Government economist declares. ÛÏThese prices are going to start climbing again.Û The Administration predicted in January that living costs would go up slightly more than 2.5 per cent this year, and Government experts now say that their crystal balls still show a 2.5 per cent rise.</br></br>The decline in food prices is expected to give way to a renewed advance very shortly. When the turn-around comes, living costs will resume their upward march.</br></br>There will be some exceptions. New car prices, for example, are likely to edge down until the 1968 models roll off the production lines. Dealers customarily shave their prices as the model year progresses. This yearÛªs poor sales performance is encouraging many dealers to give even bigger discounts than they usually do.</br></br>But the word from Detroit is that the 1968 models will cost about $100 more than this yearÛªs cars which means that i automobile prices will jump isharply next fall.