NATION/WORLD UNIVERSITY DAILY KANSAN
Friday, October 15, 1993
Inflation rate remains stable wholesale prices edge up
The Associated Press
WASHINGTON - Wholesale prices edged up 0.2 percent in September, the first increase in five months, as energy prices stopped falling and fruit and vegetable prices took a big jump upward, the government said yesterday.
The Labor Department said that its Producer Price Index, which measures inflation pressures before they reach the consumer, rose for the first time since April, when it had been up a sharp 0.6 percent.
The September gain was blamed on a 0.7 percent rise in food costs, the sharpest one-month increase since a 1.4 percent surge in April. The price of oranges, avocados, grapefruit, cucumbers and broccoli all took steep increases last month.
But even with the 0.2 percent advance, wholesale prices for the year are rising at an annual rate of just 0.8 percent, half of last year's modest
1. 6 percent increase.
Economists content that with the continued slack economy, they see no danger that inflation will become a threat anytime soon.
In other economic news, the government reported that retail sales rose a disappointing 0.1 percent in September. Analysts had been expecting a much better showing, but strength in such areas as department store sales was offset by a decline in auto sales.
For September, energy prices at the wholesale level were unchanged after having fallen for four straight months. Gasoline costs did drop last month by 1.6 percent but home heating oil rose by 1.9 percent and natural gas prices were up 0.9 percent.
A third report showed that weekly claims for unemployment benefits rose by 8,000 last week to 329,000. The small increase followed two straight weekly declines that had pushed the claims level to their lowest point in nine months.
The 0.7 percent increase in food costs followed a 0.5 percent August gain. Last month's jump reflected a 7.2 percent rise in vegetable prices, the biggest since July, and a 13.8 percent increase-in fruit prices, the largest since May.
The government is scheduled to release its September report on consumer prices today. Analysts are looking for a similar modest advance of around 0.2 percent.
The 0.2 percent in wholesale prices followed three straight monthly declines of 0.6 percent in August, 0.2 percent in July and 0.4 percent in June. Prices had been unchanged in May.
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Outside the volatile food and energy categories, prices were unchanged, supporting economists' claims that the underlying inflation rate is remaining well-behaved.
NASA said that it would try again today despite a forecast calling for more bad weather. Thunderclouds were among yesterday's many problems.
THE NEWS in brief
A last-minute glitch in a computer system that monitors shuttle takeoffs to ensure people's safety on the ground forced NASA to scrub yesterday's launch of the space shuttle Columbia on a medical research mission.
After waiting two hours for the skies to clear over Kennedy Space Center, the National Aeronautics and Space Administration resumed the countdown but had to halt it for good at 31 seconds, about a minute and a half after the computer trouble struck.
Space shuttle's launch delayed by last-minute computer-system glitch
CAPE CANAVERAL
The problem occurred in a 13-year-old computer system at a nearby Air Force station. If Columbia veered off course and was headed toward populated areas, the Air Force would have to send commands to ignite on-board
explosives and blow up the spaceship.
Tests conducted by the Air Force through the afternoon verified that all equipment was ready to support a Friday launch attempt.
No more fire for Beavis, Butt-head
A collective wrist is being brought down on the latest cultural scapegoats: Beavis and Butt-head, two dolitish teen-agers who exist only on celluloid for a devoted audience at 6 and 10 p.m. weeknights on MTV.
Last week, an Ohio mother of a 5-year-old who started a fire that killed his younger sister accused the show of turning her son into a firebug.
NEW YORK
Does the convergence of a TV show with real-life misfortune make one the cause of the other? MTV thinks not. In a statement Wednesday, the network denied responsibility for the tragedy.
Still, MTV representative Carole Robinson said that MTV "decided to bend over backwards as responsible programmers" and ban all references to fire by Beavis and Butthead.
Compiled from The Associated Press.
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