Stein Sees 'Very High' Inflation in Early '74
Largely because of recently doubled foreign crude oil prices, the rate of inflation for the first part of 1974 ÛÏcould be very high," Herbert Stein, chairman of the PresidentÛªs Council of Economic Advisers, said yesterday.</br></br>But Stein also predicted that once the initial fuel price bulge moved through the economy, the rate of inflation for the second half of next year will subside to a 4.5 per cent rate.</br></br>The Council of Economic Advisers chairman refused to be pinned down on an exact inflation figure for the first part of the year, but he said that inflation would be running at ÛÏa basic rate of 5 per cent with an additional add-on for energy.Û</br></br>For the 12 months ending in November, consumer prices have increased by 8.4 per cent, the highest rate since 1947.</br></br>A Council of Economic Advisers briefing paper on the economic situation .at yearÛªs end issued yesterday said, ÛÏThere is every reason to think that anti-inflationary policies will succeed in slowing the inflation markedly in 1974 Û But Stein said he did not dispute private economic forecasts that consumer prices would climb as