State of Business: Going Steady

Defying the economic laws of gravity, prices are falling while the economy as a whole is rising. Last week U.S. producers posted price cuts in industries ranging from autos to nonferrous metals, scrap to gasoline (see following story). Chrysler Corp.'s low-and middle-priced 19625 bowed with reductions averaging 2%; Chevy, Falcon, Rambler and other major models also rolled in with lower tags. The Labor Department's Consumer Price Index, which has risen barely 2½% in the past two years, showed its usual slight August decline (to 128% of the 1947-49 average) as harvest fruits and vegetables loaded the market and temporarily brought...

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