Business Notes: May 5, 1986

INFLATION Forgotten but Not Gone

Inflation may not be dead, but it certainly seems to have gone into hiding. The Department of Labor last week reported that the Consumer Price Index fell .4% in March, equaling February's decline. It was the first back-to-back price drop since 1965 and the steepest two-month decrease in more than 36 years. The main cause: declining energy prices, which were off 6.5% for the month.

The good news at the gas pump masked underlying trends that were less encouraging. The prices of non-energy items rose .3% in March. Medical costs led the way, with a 1%...

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