THE ECONOMY: Higher Cost of Living

After holding remarkably steady for nearly three years, the U.S. cost of living is once again at a record level. The Bureau of Labor Statistics reported last week that its Consumer Price Index (1947-49 = 100) jumped sharply (.4%) between April and May to match the alltime high of 115.4 set in October 1953. Main reason: a substantial increase in the cost of food, largely because of the upswing in beef, pork and potato prices. Main result: a 1¢-an-hour wage increase for more than 100,000 workers whose pay is geared to the index. Government forecasters, with an eye toward possible wage and price increases in the steel industry (see below), expect the index to go on rising even higher in the months ahead.