Wednesday, July 15, 1998

Explaining economics

Finally, economic news that's easily explainable.

The wholesale price index declined 0.1 percent in June, with the biggest rise, drug prices, especially tranquilizers, more than offset by falling energy prices.

Heavy-breathing analysts said the decline reflected a continuing drag on domestic prices of cheap Asian imports and meant that the Fed will not raise interest rates.

We say the connection is clear: more tranquilizers, less energy.