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Inflation Types Shift As Economy Slows Says AP Analyst
An AP Business News analysis argues that a slowing economy could alter inflation without ending it. Demand-pull inflation remains, but cost-push factors rise from higher wages and production costs. Wage growth has increased from 2.3 percent in 1963 to 3.3 percent last year, while productivity gains lag in some sectors. The piece notes that next year's balance hinges on fiscal choices in Washington and that 1967 may see continued inflationary pressure amid defense spending and consumer retrenchment.
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