Show New surge in inflation The June jump in consumer prices to toa toa toa a 96 percent annual rate is a warning that the menace of inflation is still very much with us according to recent congressional testimony by Arthur Burns Chairman of the Federal Reserve Board Dr Burns has reason to be con con- Although there was a brief decrease in the rate of inflation as the nation sank into the 75 1974 recession now that recovery has apparently begun the rate is climbing again and from a higher base than ever before This seems to be true of each recession recovery The inflation rate never falls to its previous low and each time climbs above its previous high Agricultural commodity prices have been rising recently on a broad front The rise has been particularly pronounced since the announcement of the new massive gr grain in sales to the Soviet Union Ironically since the Administration forced the cancellation of some grain sales to the Soviets last fall grain prices tumbled and the canny Russians seem to have made their most recent purchases at the virtual bottom of the market This will give a new upward impetus to food prices And manufacturers who have been awaiting an excuse to raise their own prices anew now seem to have it Dr Burns is known to fear inflation as a major threat to the fabric of our society because of its possible revolutionary impact upon those groups whose standard of living is destroyed by it The rich have ways of protecting themselves the less affluent find their savings and life insurance eroded and the purchasing power of their incomes steadily diminished the poor find that rising food prices make it impossible even to feed their families adequately Inflation is a monster whose destructive appetite should never be underestimated We are glad to have a Federal Reserve Chairman who recognizes the danger and who has pledged to combat it as best he can We cannot say as much for most politicians |