Rees Says Inflation Moderates: Rees Says Inflation Rate Has Moderated
Inflation has moderated more than government statistics have shown to date and this should be reflected in the consumer price index in the next two months,</br></br>Fear that wage and price controls will be imposed is causing companies to price some products higher than they would otherwise and thus delaying an improvement in the inflation rate, ÛÏIf lie could assure people that there are not going to be controls, I think we would see some price cuts,"</br></br>.Rees said. He noted that even the recent reductions announced by Chrysler were clearly labeled special deals rather than permanent changes in the base price of the companyÛªs cars. Moreover, some unions are seeking longer term contracts to get wage rate boosts set ahead of any new control effort, he added.</br></br>Under the last controls program, workers with wage increases already contracted for often fared better than those negotiating new settlements. Prices were frozen at then current levels and later phases of the program limited the increases from that base.</br></br>Rees believes there are no more than 30 senators who would support creation of a new controls prgram.