Variable declaration placement in C

I long thought that in C, all variables had to be declared at the beginning of the function. I know that in C99, the rules are the same as in C++, but what are the variable declaration placement rules for C89/ANSI C?

The following code compiles successfully with gcc -std=c89 and gcc -ansi:

#include <stdio.h>
int main() {
    int i;
    for (i = 0; i < 10; i++) {
        char c = (i % 95) + 32;
        printf("%i: %c\n", i, c);
        char *s;
        s = "some string";
        puts(s);
    }
    return 0;
}

Shouldn't the declarations of c and s cause an error in C89/ANSI mode?