FEARS OF INFLATION

Chronicle (Levin), 16 May 1946, Page 5

FEARS OF INFLATION

— - i (Speeial ( lorrespondent.)

DANGER LOOMS LARGE IN BRITAIN j

Received Wednesday, 7 p.m. LONDON, May 15. Fears of inflation are growing m ; Britain. They were voiced in par- 1 ticular last week in the Lor.ds by Lorci Uherwell, who said; '-'Never in ou?: history ha^ the danger from mflation loomed larger." On the other hand, it is pointed out that if the danger were becoming r.eal, one of the first signs would be a big increase in trade in the black markets, but investigation into the present working of Government cbntrols shows there has been no marked increase iii either the volume or pilee level of blackmarket trading. Nevertheless, announcements that the prices of neariy all - men 's and women 's utility clothing are to be increased by 15 per cent. to 3-0 per cent. and that there will be a general increase of 10 per cent. in the price of new cars, add to inflation fears. There . have also been hints that farm prices and rail fares may rise, These increases are the direct result of rises in wages and the net result, it is being said, is that the worker invariahly remains worse off. It is certain few eommodities apart from food, which is heavily subsidised, can he bought for l.ess than double prewar cost. Some articles even cost up to five times as much as they did before the war. One resujjt of all-round increases in wages and prices is the renewed criticism of the Government tliat it has failed to institute a wages policy, criticism to which the Government has replied that it would like those who suggest such a policy, to produce sprne details as to ffow it could he introduced. Indicating what the rise in car prices will mean, one manufacturer stated that in future an 8 h.p. saloon will cost £270 compared with £255, a 10 h.p. £330 cPmpared with £310, and a 12 h-P- £450 compared with IE445.. In addition, a purchase tax wiU have to be paid, The news is regarded as a blow to motoilsfs needing a new car, but satisfactory to second-hand car racketeers.