Still on the Rise

The nation's economy is swiftly gaining strength and should continue to expand well into 1973, but the double devils of unemployment and inflation also remain discouragingly strong. The jobless rate in May held at a high 5.9% for the third straight month. More surprisingly, the wholesale price index shot up last month at an annual rate of some 6%, threatening uncomfortable retail rises later on. Wholesale food prices rose sharply after dropping for two months; beef on the hoof hit an alltime high. Industrial commodity prices, which are at the heart of the Phase II control program, showed no sign of dropping. Herbert Stein, President Nixon's chief economic adviser, concluded that no changes are yet necessary in the controls, but he also added: "We need them rigorously applied."

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