Inflation Hits Rate Of 7.2%: Price Rise Is Biggest In 6 Months
Hopes for curbing the worst inflation since the aftermath of World War II were shaken yesterday when the Bureau of Labor Statistics reported that the cost of living in October rose sharply for the second straight month.</br></br>The BureauÛªs consumer price index increased 0.6 per centÛÓor at an annual rate of 7.2 per cent last monthÛÓto</br></br>After adjustment for seasonal variations, the index rose 0.5 per cent in both months, or at an annual rate of 6 per cent.</br></br>Analysts noted that the October increase would have been markedly less had there not been an unusual climb of 5.4	pe. cent for new cars as manufacturers posted big boosts for 1971 models. But, by the same token, the over-all rise would have been even steeper had there not been an 0.2 per cent drop in the important food component.</br></br>The food picture has been moderating since summer and the October dip (which translated into a minimal 0.1 per cent rise with seasonal adjustment) was the second in a row after 1C months of increases.