European Stars And Stripes (Newspaper) - July 23, 1988, Darmstadt, Hesse                                Saturday july 23, 1988 the stars and stripes Page 3 consumer prices up 0.3% in june Gas clothing cheaper food higher Washington a consumer prices climbed a modest 0.3 percent injure with declines in gasoline and cloth ing costs nearly offsetting a Sharp in crease in food prices the government said Friday. The Overall june increase which matched the Rise for May would amount to an annual inflation rate of 4.2 percent if prices climbed at the same Pace for 12 straight months the labor department said. Grocery store prices Rose a Sharp 0.7percent, but there seemed to be Little effect from the summer s drought other than the huge 5.4 percent Rise in poultry prices and the even steeper 6.6 percent gain in egg costs. Grocery store prices reflecting up Ward pressures before the drought took hold had risen 0.5 percent in May and0.8 percent in april. Cereal and bakery prices not yet showing the full effects of the drought were up 0.4 percent. As for meat analysts expect prices Tofall later in the summer As producers facing staggering feed prices sell of parts of their herds. But one economist Donald Ratajczak said in Advance of Friday s report that some retailers have not yet passed their lower wholesale prices on to Consumers. Indeed pork prices Rose 1.2 percent last month while beef prices gained 1.3 percent. As for Energy gasoline costs drive downward by worldwide drops in crude Oil prices dipped a significant 0.9 per cent after rising 1.6 percent in May. Clothing prices fell 0.3 percent after rising a Strong 3.8 percent through the first five months of 1988. Department analysts attributed the decline to larger than usual markdowns in prices for women s clothing. The 0.3 percent seasonally adjusted gain in the consumer Price Index left the annual inflation rate for the first half of1988 at 4.4 percent the same As for All of 1987. The Index itself stood at 118.0 injure meaning that a selection of goods costing $ 100 during a 1982-84 base period would have Cost $118 last month 50 cents More than in the preceding month. Excluding the effects of the volatile food and Energy categories retail prices Rose 0.4 percent in june double May s0.2 percent increase. The department gave these details of june s Price changes cooking Oil prices were up 0.4 per cent while Dairy product costs fell 0.2 percent. Prices of fruits and vegetables edged downward 0.1 percent. Restaurant meal prices gained 0.4 percent. Foo prices including meals eaten outside the Home Rose 0.6 percent. Energy prices Overall were down0.2 percent. Fuel Oil prices dropped 0.6 percent while natural Gas and electricity costs gained 0.4 percent. Prices for infants and toddlers clothing were off 1.0 percent followed by a 0.8 percent drop in the costs of women s and girls clothing and a 0.1 percent dip in men s and boys clothing. Housing costs Rose 0.3 percent the same As in May and april. Medical care expenses were up 0.4percent, less than in recent months but 6.4 percent greater than at this time Las year. New car prices Rose 0.3 percent. The government s monthly inflation reports Are attracting growing attention As the financial markets worry about the Impact of rising prices on the strength of the Economy. Kitty Dukakis at the 458 cafe with from left James Cooley a regular customer Young Short and Joey Washington. Kitty Dukakis promises support for homeless if her husband wins Atlanta a Kitty Dukakis ate lunch with homeless people thurs Day and vowed to do something about their plight As a very Active first lady if her husband s bid for the presidency succeeds. Mrs. Dukakis who interrupted preparations for Michael Dukakis Cor nation As the democratic presidential nominee to eat at a restaurant for the homeless on the fringe of the City downtown also criticized president Reagan s social Agenda. Homelessness is a National prob Lem. A National tragedy mrs. Dukakis said. We will work together Hope under the leadership of presi Dent Michael s. Dukakis in  if Dukakis is elected i would be a very Active first lady involved in this Issue and other issues that i feel Are important she said. Inside the 458 cafe mrs. Dukakis at lunch at a table with two homeless men. She was joined by mayor Andrew you Gand his wife Jean mrs. Young s Mother and a . Short local minister who helps run the Center. She selected lasagna from a men that also offered roast beef and tuna casserole. For most of the meal mrs. Dukakis chatted with Joey Washington a Home less Vietnam Veteran seated across fro her. Washington said he suffered from Post traumatic stress syndrome which led to impulsive behaviour. Leaning across the table mrs. Dukakis asked whether Washington would consider it prying if she asked him to discuss his life since returning from Vietnam. He said he became disenchanted by anti War protests and on his first Day Back in the United states some Long hair spit on my  mrs. Dukakis told Washington that even if we love our country we have to admit that sometimes american scan be  it was not Clear whether she was referring to the pro tests or to . Policy toward Vietnam. Outside she told reporters that the Reagan administration s spending priorities had led to reductions in pro Grams to Aid the homeless. Leadership at the Federal level has Tobe there and it s missing today she said. Factories last month operated close to capacity than at any time in eight years raising fears that Strong demand will free manufacturers to raise prices. Meanwhile unemployment fell to 5.3percent, a 14-year Low and heightened concern that workers will be Able to de Mand higher wages. Sandra Shaber an economist with the futures group a Washington based consulting firm said consumer resistance to higher prices is discouraging inflation outside the food and Energy categories. Clients wring their hands and Tea their hair. In Many industries restau rants women s apparel electronics you can virtually Only sell something if it s on Sale she said. Ratajczak warned that the Long Ter Outlook for inflation is not As Good As Over the next month or so. After meat prices fall because of an increase in slaughtering prices will go up and stay up for at least a year in response to a shortage of animals. Also the Low unemployment rate will begin to be Felt in an increase in the Price of services he said. An upward tilt in inflation appear fairly inevitable he said. Next year could be a problem year but it won t  8 inspectors rejected As soviet spies los Angeles a eight soviet proposed by Kremlin leaders to inspect . Missile Sites under the new medium Range missile treaty have been rejected be cause the government believes they Are spies the los Angeles times reported Fri  eight were rejected during a screening process before 22 soviet treat inspectors arrived earlier this month and the soviet Union was not known Mohave complained about the rejections the newspaper  soviets Choice of the eight was seen by . Officials As evidence that the pkg intelligence Agency and its military counterpart the Gru have not curbed their activities despite a warming in .-soviet relations the newspaper  proposed inspectors had been linked to soviet intelligence activities inthe past but not necessarily in the United states the times  of the . Inspectors were rejected by the soviets the times  the intermediate nuclear forces treaty inspectors who Are cleared May visit designated missile facilities in the Host country and verify that the treaty provisions for the elimination of All medium Range missiles Are carried  least seven of the eight rejected men were proposed by the soviet Union As per manent inspectors at Hercules Plant one in Magna Utah the times reported.. Counterintelligence officials con Sider the Hercules Plant to be the facility most susceptible to technical and human intelligence gathering barred under the missile treaty the times said. The soviets have listening plat forms and agents on the East coast and the West coast but none in Middle America an official told the times. We want to keep it that  treaty Calls for the elimination of 6,000 soviet missiles and about 2,000u.s. Weapons within three years. The soviets Are to inspect 26 Sites inthe United states and Europe and . Teams Are to visit 133 soviet Sites