Show Babson's AUTHENTIC AUTHENTIC STATEMENT Roger W aboa Special to THE VERNAL EXPRESS WHAT LIES AHEAD FOR LIVING COSTS Babson Park Mass You'll be paying 25 per cent more for forI I consumer goods and services by the end of this year than you were at the beginning That's what the government economists predict and it looks as though they may be right on onI I the button Or very very close to it it Here are some of the reasons the forecast seems to tobe tobe II be logical even if a trine trifle dis to the householder Recent Living Cost Since last fall consumer prices have been been- comparatively stable enough so to make the hope that the buying power of their pocketbooks might grow stronger But most of the slowdown has been due to lower prices in certain foods such as eggs fruits vegetables and pork This has tended to offset to a fair de gree the basic increase inmost in inmost most other prime goods and services But the cost of beef andI I I milk cheese etc is on thee the I way up fore other foods follow Then the climb in overall living costs will be resumed It wont won't be a mad inflationary runaway but the advances will be persistent and will in in- in involve volve just about every item in inthe inthe the consumer price index The value of your dollar is going to be nicked away during the rest of 1967 and probably bly well beyond that Some mods among the Administration will console you with the claim that this gradual price inflation will help to keep business strong But you will feel it in the pocketbook that they cant can't deny Items Heading Upward Along with foods there will willbe willbe be upward pressure on the price of apparel shoes gasoline many household goods and en- en entertainment en It will become steadily more expensive to eat out even at restaurants that have thus far sustained the bargain image It is going to cost more for housing wh th- th ther er you ou rent or buy The promise of some softening in mortgage interest rates will not be beable able to balance out the continuing hike in building costs insurance ins rates and property taxes While medical expenses are not a regular family outlay they are bound to show up when least expected and must be considered as a part of every budget Over the past twelve twelvemonths twelvemonths months medical costs have skyrocketed over 8 per cent and this may well be only a beginning Doctors will keep raising their pay sights while nurses are organizing to ensure steady gains as well as shorter hours Naturally all this is go go- going ing to be passed along to the patients needing hospital treat meat ment Appliances Autos Autos- Down Then Up Cutbacks in residential build build- building ing have bave slowed sales of color TV and other appliances ances with resultant weakening of prices It should be noted however that housing starts are arc once again on the rise and gentler mortgage interest rates are making for Ot more mere lam ism As this trend intensifies prices of appliances will be nudged upward again in an ef- ef effort effort fort to lessen the profi profits ts squeeze that has tormented many companies Lagging turnover in autos has also placed downward pressure on prices es for both used and new models Dealers are frantic to reduce hear hir inventories even if it means sharp losses for the time being Until fall this price sag will prevail but then will come the 1968 models that will willbe willbe be approximately more expensive than those of 1967 Hence autos will add their strength to the general climb in costs of all retail goods and services service S Push So far many concerns have been covering their increases in labor costs from their earlier healthy profits But outlays for labor are still soaring to ward new highs and many major industries will have to give wage boosts this year and next The rest result l will be more and more passing of the buck to the consumer in the form of higher prices So there is as yet no end in sight for the therise therise rise in living costs |