European Stars And Stripes (Newspaper) - March 29, 1987, Darmstadt, Hesse                                Page the stars and stripes sunday. March 29, 1987 business news q. Through the Trutt i hate bought and sold Many different blocks and have milled an ten Long Ledric Utility shirts. I no Bay tit of Lihty con Paniego with Rny Wittin Quai Tioli. Mil m pm Prawd in inflation rises As Dollar Dreps new York a a surge in inflation reported by the . Government was caused in part by the declining value of the Dollar � Ong awaited antidote Tor the United states Trade deficit several economists say. The cheaper Dollar is supposed to shrink the Trade Gap save american jobs and Case pressures for protectionism buts far its most noticeable effect has been negative pushing up prices. Consumer prices Rose at an annual Rale of 5.2 percent during february the labor department reported Friday. That was a Sharp increase Over the climb of1.1 percent in 19s6. Meanwhile there has been link improvement in the . Trade situation at least on the surface. The merchandise Trade deficit hit a record s170 billion last year even though the Dollar s rapid de Cline began in february i9s5, and exasperated lawmakers Are considering Mea sures to shrink the Gap. President Reagan said Friday that he plans to raise tariffs on 1300 million Worth of japanese goods next month Leforce Japan to comply with an agreement on semiconductor Trade. Meanwhile the Dollar declined sharply on world markets last week particularly against the japanese yen dropping below the psychologically important bar Rier of Iso yen on tuesday and closing the week at 147.20 yen to the  s the Dollar s lowest level since the late i94q. Although there Are Many reasons for higher inflation in Early 1987, a prime Stock pulse one is the cheaper Dollar which de creases the buying Power of the . Cur Rency and makes imports More expensive said David Murro a general motors economist in new York. Ironically Munro said the lower Dol Lar is making the Trade deficit bigger in the Short run not smaller because it in creases the Bill for imported goods. In the Long run though the lower Dollar should help the Trade Gap As customers switch Over to cheaper american mad products to save Money. Reflecting the Dollar s fall import prices excluding Energy were up about 9.3 percent in the second half of 1986 compared in a year earlier mid Gilbert Leeoner chief economist of Core states financial corp. In Philadelphia. However in spite of the higher prices of imported goods americans have continued to buy increasing amounts of them illustrating the difficulty of turn ing around the Trade deficit. In the last Quarter of 1986, the volume of Overall imports was up 8.6 percent and the volume of manufactured imports was up 9,2 percent said Gary Schlossberg a senior economist for Wells Fargo Bank in san Francisco Schluss Borg predicted the situation would improve this year As Consumers reined in their spending on imports an the volume of exports continued to show improvement because of the Price advantage of the lower Dollar. Sounding an optimistic note Treasury Secretary James Baker Iii predicted last week that the decline in the Dollar that Anui con Post Hen Letha a ohm that vhf now Elora be you i a t Oil 14 o 1h has already occurred would pare the nation s merchandise Trade deficit by s15 billion to f20 billion in i9s7 from it record 1986 level. Most economists predict . Consumer prices will Rise Between 4 percent and 5 percent in 1987, partly because of the Dollar s lower purchasing Power. That is a at cry from the double digit jumps Orthe late 1970s. Historically Tor an Economy our size. It is not a Large problem said Allan Les lie of discount corp., a new York securities dealer. Still he Caner pointed out. A f percent inflation rate was considered so scandalously High in 1971 that president Nixon imposed wage and Price controls. The february consumer Price in crease although substantial actually calmed the tears of some economists about the effect of the cheaper Dollar on inflation Schoss Bergseid consumer prices excluding the Vola tile Tood and Energy sectors were up just 0.3 percent Down from 0.5 percent in january Schossberg said in tact some economists dispute assertions that the cheaper Dollar is adding to inflation. There is a rally Good array or evidence that the effect of the Fulling Dollar on the consumer level has been minimal said Eugene Sherman chief economist of the Federal Home loan Bank of new York. Sherman said competitive pressures have kept foreign suppliers and . Distributors of foreign products from pass ing along the effects of the Dollar s plunge to Consumers. $167 million Given to Ford executives Detroit a Ford motor co.,which earlier this month split some of its Industry leading profits with its rank and file employees is handing out $167 million in executive bonuses. Ford s 1986 profits Rose 31 percent Over the previous year to $3.3 billion surpassing those of sates Leader general motors which earned $2.9 billion. The executive bonuses were announced in the no. 2 automaker s an Nual report to its 262,000 shareholders. The number of executives who will get the bonuses won t be released until later this month when Ford malls the proxy statement for its annual shareholder meeting scheduled for May 14, said Ford spokesman Tom  17 a tent by volum vol oat Flint be Yak 441t s �.3�    " 30 of 3s.o i36.kx 3� my. Wi6nl.10.jsnu 1i07nl.bhnl. An hi.111  1denl. On inon Offra tie. Usova  Tohl ii Punu  24 42 h.li4wn.l. Uunl.12unl in in l Irith. I2b4nl1i9ihl mini 144 uni. Iu4b3nl.016nl he. L 19 lit lohnl.3jmhl 1d33nl i2hnl a i  in 70ru 10 1 1  12 m  is jul. Oso 10 34  Giom v . O 1c4inl.mi2m ia0i Lut 14ii 17 to 714 is a 373 11 3d 12 39   03� i i921nl Al m n i Jokull 21 Al h u ii 29 19 12 ii 2muhl Buhl. 12 o  i072nl Tohl Ioune Dlvgi m 1t 11n l. Htun ii23 . Of i1knl and 7.14 is t07  7 in 7� so i37 3041 . 102bnl"jswnl. 1081hl