. . . BUT NOT IN OUR BACK YARD, SAY SHOPPERS IN ROANOKE

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: FRIDAY, January 17, 1992                   TAG: 9201170530
SECTION: BUSINESS                    PAGE: A-7   EDITION: METRO 
SOURCE: CHARLYNE H. McWILLIAMS STAFF WRITER
DATELINE:                                 LENGTH: Medium
. . . BUT NOT IN OUR BACK YARD, SAY SHOPPERS IN ROANOKE
Roanoke Valley consumers said they're pleased that the national inflation rate was held down in 1991, but many said Thursday they're waiting to see more signs of an improved economy before changing their conservative spending habits.
In fact, they said, prices on things they buy have gone up.
It's going to take a lot more than a slow inflation rate to make local consumers optimistic about the economy.
"It's not time to spend; it's time to cut back," said Livingston Pritchett Jr., who is retired on disability.
The Roanoke resident, shopping for car repairs at Airport Exxon, said he had to cut down on his spending in the past few months because he lives on a fixed income.
Lester Craig, the station's manager, said he capped his service prices to help consumers during the recession.
Shirley Cecil, another customer at the station, said she has seen price increases on products she buys, too. Oyster crackers, for example, have risen from 99 cents a box to $1.50 in the past year.
Even people who are working are skeptical whether the national 3.1 percent inflation rate really has had much influence on their spending.
Virginia Giles, a state employee, said she hasn't had a raise in two years. And because of increasing prices on things she buys, she said she joined Sam's Wholesale Club; she finds prices lower there.
Giles said she's noticed prices on things such as meats and other products rising in the past year.
Although Hazel Hopkins agreed the economy is bad, she said she's used to hard times, being the wife of a coal miner.
Hopkins' husband worked in the mines for 30 years, and she said she got used to layoffs and having to stretch pennies.
"Back then, unemployed people only got $20 a week, and they had to wait six weeks before they could get that," she said as she shopped at the C.G. Murphy Co. variety store in Vinton.
Hopkins said the low inflation rate doesn't really mean anything to people without jobs, and people aren't going to change their buying habits.
"People aren't going to have anything to buy with," she said.
Hollins College economist Mary Houska said she's surprised the rate isn't lower, considering that prices of raw materials have been flat.
The culprit, she said, is the economy.
"As unemployment rises and the economy fails to grow, you would expect prices to decline or not rise," she said.
Although she doesn't think consumer buying habits will change because of the latest Consumer Price Index number, Houska said she does think many people will be affected by the news.
People who still get raises based on the cost of living will get small ones because of the small change in the inflation rate, she said.
Vinton resident Helen Hatton said she already is accustomed to shopping with less money. The recent cut in interest rates, the downside of low inflation, had an adverse effect on Hatton, who depends on interest from investments for her income.
She said she now gets less than she used to. And that has changed her buying habits.
Attitudes such as Hatton's have made more people shop around for bargains offered by places such as Goodwill Industries.
Joyce Beaver, supervisor for Goodwill's four regional stores, said she's seen more middle-class and upper-class people in the stores recently. She attributes that to the growing realization that Goodwill provides used products that are neat, clean and usable.
Patsy Light of Daleville, who has stopped by Goodwill occasionally for years to find bargains, said she will continue to be a conservative spender until she sees a steady trend the the economy is getting better.
"We're not going to be selling any cars to Japan anytime soon," she said and laughed, referring to President Bush's recent trip there.
Despite the fact that her husband has a stable job, Light said, her son-in-law gets laid off periodically and it's something her family has adjusted to.

by Archana Subramaniam by CNB