Council on Wage and Price Stability Investigates Flour Price Increases

by George C. Eads on August 15, 1975
by George C. Eads

George Eads, Acting Director of the Council on Wage and Price Stability, announced today that the Council has asked the three largest flour millers for an explantion of their recently announced flour price increases.  In a letter to the three companies (Pillsbury, General Mills and International Multifoodsl, Eads noted that they had apparently based their increase on recent increases in wheat futures prices, and said, “We [the Council] have difficulty in understanding how an increase in future wheat prices is translated into an increase in present flour prices. This is especially so since we recall that, when wheat prices were falling, flour prices followed rather sluggishly and with a long lag.” The Council has no authority to delay or roll back prices, but is rather charged with monitoring inflationary movements in the private and public sectors of the economy. President Ford on August 11 signed legislation extending the Council until September 30, 1977.

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