This Day In 1970's History: Friday February 15, 1974
- Inflation is worsening. Wholesale prices increased 3.5% in January and were up 20.8% over the past year. Wholesale livestock prices increased 15% last month, causing all farm produce prices to jump. Fuel prices increased 8%. Food prices are rising by leaps and bounds. Consumers are expected to notice the most excessive food prices at the retail level within the next two weeks. Wholesalers believe that food prices are likely to continue upward. [CBS]
- The dreary script generally forecast for the American economy in early 1974 -- lower production and sharply higher prices -- was followed on schedule in January, governmnent reports disclosed. Wholesale prices climbed 3.1 percent and industrial production dropped 0.8 percent. The news followed an earlier report of higher unemployment last month. Taken as a whole, this is probably the worst set of monthly economic statistics in at least 25 years. [New York Times]
- The number of persons not paying their installment loans on time increased by 19 percent in November and December, partly because of inflation and the slowdown in the economy. At the end of the period, the percentage of delinquent loans rose to 2.53 percent of those outstanding on Dec. 31, up from 2.12 percent at the end of October, according to a report by the American Bankers Association. [New York Times]
- Service stations are balking at the new government regulation forbidding gasoline sales to regular customers only; station owners want permission to raise prices. Many stations have closed to protest the gasoline allocation system and energy czar William Simon's regular-customer ruling. [CBS]
- Federal energy office deputy director John Sawhill stated that gasoline rationing is not likely to be used. President Nixon opposes rationing. [CBS]
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