RETAIL PRICES

Dominion, Volume 8, Issue 2525, 28 July 1915, Page 4

RETAIL PRICES

STATISTICAL INQUIRE

INCREASED COST OF LIVING

Further results of the investigation by the Government" Statistician' (Mr. Malcolm Fraser) of the retail prices iu New Zealand are published in the July number of the Labour Journal. Attention is drawn to the apparent increases in jtlie cost, of living, .which are really due to seasonal changes in prices of certain commodities, Tanging from quarter to quarter, irioach year. It is 'also pointed out- that in combining the threo food groups and all _ groups a simple arithmetic averago is not presented, but a, new index number, calculated from tho total aggregate expenditure on the throe groups. An interesting analysis is made of the fii'st group of food commodities. Iu the first division are placed groceries (articles mainly imported), in the second lino .home products (bread, flour, oatmeal, onions)," and in the third sugar. Tho prices of articles in' tho first group have varied l from time to time, but to no great extent. They droppedgradually and consistently from 1891,. when the'index number for Wellington was 1089, till 1907, when a tariff revision brought tho number down ripidly to 994; Since 1912 there has been an increase to a figure represented by 1097 in 1914. As a general rulo prices in'the four centres rose and fell together, though not to the same extent; Home products,'it is shown, have been largely responsible for the fluctuations in tli'o index number previously given for the grocery group; The movement of'prices in the four centres points to the existence: of a general,' instead of a local, nwrket for these commodities. The rise m Wellington has been from 841 in 1891 to 1173 iii 1914. Mr. Fraser gives a moving quinquennial average, enabling tho course of prices to be followed with reference to temporary variations. A comparison of these two groups shows that while, on the-quinquennial averago figures, imported groceries have, up to 1912, become cheaper, homo products have risen greatly in price. Food products of home origin fliictuate considerably more than do the imported manu-factured-groceries. A' notable, point is here drawn attention to—that while tho increase in home products, dairy produce, and meat does very materially increase the. cost of living, yet it also indicates .the. great benefit derived by the Dominion as a whole in that products sold to' other countries are increasing in value,_ while products of which New Zealand is a buyer, do not rise nearly so much. Sugar prices in the . four chief towns fell from 1891 (Wellington's price was represented them by 1383) till 1909-10 (Wellington 913), and then commenced' to. . rise again (tho Wellington figure for 1914 was 1055). • What a Sovereign Would. Purchase. _ In ' the previous month Mr. Fraser showedwhat it cost in various years to purchase-;.what; in the. average, could be bought for £1 over tho five-year period, 1909-13, in tlio four towns. In this issue an inverse comparison is made. This'shows that tho sovereign of 1909-13 -would have purchased in 1899 goods to the value of 225. 10-Jd., and in 1914 goods to the value of 18s. OJd, Another table' l which presents increases in a' clear manner.is that in iglatioiv to weekly budgets. The Statistician carefully explains that data are not available' to enable an actual .average family budget'to be compiled, but tho table serves,.as an illustration of the action of prices on those articles which bulk largely in the household expenditure of the average man. In groceries the :increase per cent, of' tlio average cost in the first quarter of 1914 to the. first quarter of 1915 is 22.47, in .dairy_.produce 7.53, in meat 9.14, in rent there is a decrease of 1.76, and over tlio total budget an increase of 7.26 per cent. , '..Index numbers for the first quarter of . 1915 are also given for the 25 representative, towns. ■ The following numbers represent the prices in Wellington, (numbers for the first o.uarter of 1914 being given in parentheses) Groceries, 1219 (1041); dairy produce, 1119 (1109); meat,<ll7B '(1103);- three food groups, 1182 V (1078). There is no change in .house;'rent. All groups, 1217 (1162). , The Most Expensive Town. Taking all groups together,' Wellingtons stands out as easily the most expensive town in New Zealand, with Napier and Invercargi'l next, Gisborne, Rotorua, Tail)ape, Dunpdin, and Nelson. coming, after. Wellington's position -ii due to rents. The cheapest'town, Waihi, owes its position to low rents, as does Alexandra, tho second town. Tho increase in Wellington, as compared with tho first quarter of 1914, is 5.64 per cent., but thero is . a decrease of .33 per cent, compared with the fourth quarter of 1914. Index numbers for the Dominion give the following comparisons of tho first quarter 1915 (stated first), and the first quarter of 1914 :—Groceries, 1210, 1089;- dairy produce, 1100,1042; meat, 1213,1107; three food groups, 1186, 1063; house rent; 963, 986; all groups; 1100, 1033. This shows in which lines the main increases liavo been. -