INCREASE IN FOOD PRICES HELP RISE IN LIVING COSTS

Bay of Plenty Beacon, Volume 15, Issue 23, 19 April 1950, Page 7

INCREASE IN FOOD PRICES HELP RISE IN LIVING COSTS

The cost of living rose by four points during the last quarter of 1949, according to the official statistics, the main contributing factor being higher food prices. The all-groups index number at the end of the quarter was 1018 as against 1000 at the beginning of the year.

The food group index rose ten points in the last quarter, contributing 3h points to the all-groups movement. Within the food group, the meat and fish sub-group index rose 15 points. A rise of 74 points contributed by potatoes was discounted by favourable variations from the expected pattern on the part of other seasonal items, so that the net contribution of the fruits, vegetables, and eggs .sub-group was about 5i- points upward Minor Increases

Minor increases in prices of other foods such as pepper*, vinegar and breakfast cereals combined with a drop in summer milk prices to produce a net contribution, by the other food sub-group, of 2J points downward.

A continued rise during the period in the fuel and lighting index was attributed mainly to a delayed effect of the increase in coal prices which occurred earlier n the year. Clothing prices showed a general decline, the sub-group index falling by nine points, but footwear prices continued to advance. ' The combined group index returned at the end of the year to its base value of 1000.

Decreases in the price of durable household goods and other commodities would together have lowered the all-groups index by a quarter of a point, but services gave the miscellaneous group an. upward fillip of a point and a quarter.