Daily News from New York, New York • 5

-a bU 4 a-i t. fifcBS (10(51 liW(Sl IISlV TOff 1 lEffet EB By JEROME CAH1LL Washington (News Bureau) Consumer prices rose at a 5.3 annual rate in August matching the July increase with hikes in new car prices and gasoline leading the parade, the Labor Department reported yesterday. Food prices also rose, ending two months of downward movement. ROBERT ROSAMIUO DAILY NEWS Steel workers picket outside MTA headquarters on Madison Ave. yesterday to press for use of domestic product in upcoming projects.

300.3 300 1983 295 290 ulo.4 In August Ull MAM mm mf 285 280 A SZJ: By JAMES HARNEY and MARCIA KRAMER In New York and northeastern New Jersey, prices rose only 0.17c in August. Since August 1982, prices have risen only 3.9 locally, the smallest annual increase in 11 years. Larry Speakes, White House deputy press secretary, described the 0.4 hike in the national Consumer Price Index in August as "evidence that inflation remains under control." He said the modest 2.6 increase in the index over the last 12 months was "a very encouraging sign for interest rates" another administration pitch for lower rates. Although most economists inside and outside the administration, see little danger inflation will surge in coming months, they do expect prices to rise somewhat as the recovery continues into 1984. Key Commerce Department analysts believe inflation will hit 4.5 next year, although some private forecasters like economist Michael Evans believe a 5.5 rate is morWikelry.iorin The summer's drought, which cut heavily into grain and poultry production, is expected to add to price pressures.

In August, however, there was mixed evidence of the drought's impact. Poultry, fruit and vegetable prices rose, but beef and pork prices fell as farmers cut back their herds in the face of drought-induced feed shortages. Higher meat prices are expected in coming months as the premature marketing of livestock now cuts down on supplies. IN AUGUST, the transportation sector of the Consumer Price Index accounted for half of the overall increase, rising at an annual double-digit rate of more than 12. Gasoline prices advanced 1.17c for the month, well above the 0.47c increase in July.

New BOB JUFFRAS DAILY NEWS cars were up 0.8, used cars rose 1.8 and auto-finance charges jumped 2.47. Other major components of the consumer index rose, but less than they did in July. Housing was up 0.27c for the month, apparel increased 0.4, medical care advanced 0.57c, entertainment climbed 0.3, and a category that includes other goods and services showed a 0.6 boost, mainly because of higher cigaret prices. The price movements pushed the index which covers all urban consumers and their purchases to 300.3, which meant that $300.30 was required in August to purchase a basket of goods and services that sold for $100 in 1967. Thus, the cost of living has tripled in 16 years.

A more narrowly defined index, measuring the prices paid by urban wage and clerical workers, registered a slightly smaller increase of 2.47c over the last 12 months. This is the index used in determining cost-of-living benefit adjustments for Social Security recipients and workers covered by labor contracts that include inflation escalators. project's entire construction cost to buy American materials. "There were no winners and no losers except the people who must pay for the extra cost of the steelthe riders," said one source familiar with the negotiations. An angry Ravitch, whose resignation as MTA chairman is effective at the end of October, said: "Not only will this result in a reduction in improvements, it can also serve to discourge some manufacturers from bidding on the contracts.

I don't feel it's fair to the fare payer." The Throgs Neck vote will add an estimated $2.7 million to the $33.9 million project. Cuomo said he was "pleased" with the decision and immediately issued an executive order forcing all other state agencies to adopt the 6 standard. Cuomo said using domestic steel on the Throgs Neck Bridge will result in the hiring of 175 workers by New York steel companies. In a surprise move, a sharply divided Metropolitan Transportation Authority board voted 8 to 6 yesterday to reverse itself and use only American-made steel to rebuild the Throgs Neck Bridge. The action, which was roundly criticized by lame-duck MTA Chairman Richard Ravitch, followed days of intense negotiations between the MTA and Gov.

Cuomo over the Throgs Neck project and the setting of cost guidelines for compliance with the "Buy American" steel bill passed this year by the Legislature. The bill requires state agencies to purchase American-made steel unless the cost is "unreasonable." IN A COMPROMISE with Cuomo, the board gave in on the Throgs Neck project. But it also adopted a federal standard of spending no more than 6 over the low foreign bid on steel contracts to favor domestic manufacturers. Cuomo wanted the MTA to agree to spend an additional 25 of a Mgmqf MsdsBs LrOasSdl eroteirs Bids Lubavitcher leaders 'condemn' crowd's action a cu SP 3 sr reporters. "I was horrified to read that the crowd whooped and hollered as the injured officers were being taken to waiting ambulances." Koch blasted "the actions of (those who) showed a total disregard for the law I am hopeful that the responsible leaders of the Lubavitcher sect will publicly condemn this type of behavior." Koch said police were correct in showing consideration for the suspect's religious beliefs.

"This type of cooperation can and should be paid, but not at the risk of bodily harm to the police officers," he said. Leaders of the Lubavitcher sect could not be reached for i comment yesterday. By ARTHUR BROWNE With Don Singleton, Franklin Fisher and Murray Weiss Saying he was "shocked and angered" by the behavior of several hundred Hasidic Jews who clashed with police in Brooklyn Thursday afternoon, Mayor Koch yesterday called on Hasidic leaders to "publicly condemn" the actions of those involved in the melee. Meanwhile, some police officers at the Empire Blvd. station privately expressed anger that the four Hasidim arrested were charged with misdemeanors, not felonies.

The cops said they believe the Hasidim were given kid-glove treatment because of political considerations. The melee occurred after police arrested a member of the sect, Levi Weingarten, 27, of Balvour Place, Crown Heights, for allegedly throwing a stone at a bus that was passing the Lubavitcher Synagogue at 770 Eastern Parkway. he was thus forbidden to ride in a motor vehicle, the cops reportedly tried to walk him to the stationhouse, but an angry crowd quickly formed. Ten officers were slightly injured and three more Hasidim were arrested in the ensuing melee. "i AM SHOCKED and angered by the behavior of the crowd which participated impeding police officers in pursuit of their duty," Koch told When the suspect protested that it was the Jewish holiday of Succoth and.