Inflation in L.A. Hit 5.9% During Past Year
Consumer prices rose 5.9% in Los Angeles during 1989. But it may have seemed like a stiffer boost if you’re a woman in need of a haircut or a consumer hooked on cornflakes, because prices of those items rose much more sharply, according to a survey by the Los Angeles Area Chamber of Commerce.
Meanwhile, those living on tuna and Coca-Cola are finding them easier to buy because prices of those and a handful of other items decreased, the survey showed.
“If you look at these numbers, you know that our biggest problems are in health care and housing,” said Jack Kyser, chief economist for the chamber. “But they (the statistics) also track business events. For instance, you can easily see the change in gasoline prices before and after the Exxon Valdez oil spill. And the cost of tuna may be affected by the dolphin controversy.”
The average cost of spending the night in a hospital jumped 12% to $457, Kyser said. And the median price of a single-family home in Los Angeles jumped 17% to $224,776, according to the California Assn. of Realtors.
However, the price of tuna fell 24% during the year. Economists speculated that consumer boycotts, spurred by the killings of dolphins by tuna fleets, may have had an impact.
Meanwhile, the price of a gallon of gasoline rose 8% to 90 cents. But the cost had increased last summer to $1.06 after the Exxon oil spill in Alaska.
Among the biggest price hikes was for a woman’s shampoo, trim and blow-dry at the beauty parlor, up 43%. Folger’s coffee recorded an 18% increase, selling for $2.61 a pound in December, compared to $2.21 last January. An 18-ounce box of Kellogg’s cornflakes is also more dear, selling for $1.87, compared to $1.59 at the beginning of last year.
Headaches have also gotten costlier. A bottle of Bayer aspirin, $3.70 last January, now retails for $4.32--a 17% hike.
Among items that decreased in price: a pound of ground round, 12%; a box of Kleenex tissues, 10%, and a two-liter bottle of Coca-Cola, 7%.
Reasons for the wide disparities? Consumer demand, according to Robert H. Skinkle, economist at Wells Fargo Bank in San Francisco. Demand for tuna may have fallen because of consumer boycotts, he noted, but the demand for consumer services--such as haircuts--is still strong.
1989 PRICE CHANGES
A survey by the Los Angeles Area Chamber of Commerce shows prices paid for 20 frequently purchased items in Los Angeles.
Percent Item Jan. 1989 Dec. 1989 change 1 pound of ground round $1.59 $1.40 -12 1-pound can of Folger’s coffee 2.21 2.61 +18 6.5-ounce can of tuna 0.84 0.64 -24 1 box of Kleenex tissue 1.18 1.06 -10 12-ounce can of frozen orange juice 1.67 1.65 -1 1 gallon of unleaded gas, self- serve 0.83 0.90 +8 1 bottle of Bayer aspirin (100 tabs.) 3.70 4.32 +17 1 McDonald’s quarter-pounder with cheese 1.67 1.76 +5 1 tube of Crest toothpaste 1.74 1.94 +11 1 first-run movie (evening) 6.10 6.50 +6.5 1 half-gallon of milk 1.06 1.16 +9 2-liter bottle of Coca-Cola 1.17 1.09 -7 Woman’s trip to beauty parlor 15.00 21.40 +43 (shampoo, trim and blow-dry) 42-ounce box of washing soap 2.32 2.38 +3 1 carton of Winston cigarettes 14.89 15.19 +2 18-ounce box of Kellogg’s corn flakes 1.59 1.87 +18 Man’s dress shirt 19.87 21.80 +10 1 pair of Levi’s 501 jeans 21.00 20.98 * Visit to the dentist (teeth 45.20 47.80 +6 cleaning and inspection only) Average cost of a hospital room 408.40 457.00 +12 (semi-private room, per day)
* less than 1%
