President Misspeaks On Prices
President Reagan, in a misstatement, yesterday said that energy costs were not a factor in rising consumer prices, which he blamed on "fringe items like toothpaste and Kleenex."</br></br>The Labor Department's Consumer Price Index showed that gasoline prices rose 2.3 percent in March as overall consumer prices rose 0.4 percent.</br></br>"I'm kind of counting on those authorities that have been saying that this is a kind of temporary thing," Reagan replied. "It happens to be that it is not in main items-the increase in inflation has been in sort of fringe items like toothpaste and Kleenex and things of that kind. So I'm hopeful that it does not mean there is any change in our economy."</br></br>When a reporter suggested that higher oil prices were a factor, Reagan replied, "That's been relatively stable. That's not a contributing factor this time."</br></br>Treasury Secretary James A. Baker III was sitting close to the president as he made the remarks. In a speech shortly before going to the White House, Baker said the jump in inflation "reflects primarily something that we have been saying to be the case for quite some time, and that is an increase in oil prices."