U.S. inflation 5 per cent?

Press, 25 November 1982, Page 25

U.S. inflation 5 per cent?

NZPA-Reuter Washington American consumer prices rise 0.5 per cent in October — much more than many economists had expected — mainly because of higher costs for housing and petrol. In spite of the rise, consumer prices have risen at an annual rate of only 4.9 per cent during the first 10 months of this year. It now

seems almost certain this year’s price performance will, be the best since 1976, when prices rose 4.8 per cent. The October increase came after a 0.2 per cent rise in September and meant that prices rose during October at an annual rate of 5.9 per cent, the Labour Department said. The easing in inflation,

which was running at more than 12 per cent when President Reagan took office in January, 1981, remains the brightest spot in the United States economic picture.

The slowing has been purchased at the cost of a severe recession that drove the unemployment rate to 10.4 per cent, its highest level for 42 years, in October.