THE ECONOMY: Living Costs: Higher

The cost of living hit an alltime high in mid-June. On the basis of the new BLS index, it reached 114.5 of the 1947-49 average (.2% more than the previous high recorded last August*), chiefly because of a 1.4 increase in food prices. For 100,000 workers in aircraft and glass plants, the March to June rise means a wage boost of i¢ to 2¢ an hour.

All signs indicated that the index will rise some more, despite the Korean truce. Any cuts in defense spending were expected to be slight and gradual, and defense officials estimated that only about $1...

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