OCR Text |
Show Food Price Hikes Unwarranted; Speculation Expected To Recede Recent food price 'hikes are not warranted, according to the latest Department of Agriculture Agricul-ture report on the national food situation. The report bases its conclusion on the fact that supplies sup-plies of food available to civilians civil-ians in the United States are expected to continue at about the same leval as in the past 2 years. "Even if the Korean situation results in some increase in mil- I itary procurement of food in coming months," says the report, re-port, "supplies available for the civilians would be noticeably affected." - There has apparently been some speculative buying and price increases in food in recent re-cent weeks substantially similar to those occuring in 1939, which receded as soon as consumers realized that food supplies were adequate. The current food supply sup-ply situation is again such that speculative buying and price increases in-creases are not warranted." Regarding food output this year the report states: Production of food this year is expected to total about the same as in 1949, 38 per cent more than the 1935-39 average and a little above 1941, the record rec-ord year before World War II. "Over-all demand for food has strengthened this spring and summer along with the general rise in economic activity. The principal effect of the Korean situation on the food outlook for the next six months is likely to be the strengthening of consumer con-sumer demand as employment and consumer incomes rise with the impact of an accelerated defense de-fense program." |