COST OF LIVING

Dominion, Volume 20, Issue 62, 7 December 1926, Page 8

COST OF LIVING

A SLIGHT DECREASE According to the Abstract of Statistics for November just issued by the Government, the retail price index for the three food groups as at October 15, 1926, was 1569, a decrease of 14 points since the previous month. This index number shows an increase of 46.6 per cent. 1 over that for July, 1914. The statistician states :

“The recent increase in the price of sugar has accounted for the 9-point rise in the index number for the groceries group. “In the majority of towns the summer prices of milk are in operation, with similar reduction in the price of butter, although eggs show a tendency to increase in price as the Christmas season approaches—the net result being that the index number for dairy produce has fallen 47 points. “Mutton has been somewhat reduced in price, beef also, but to a lesser extent, and this has resulted in a decrease of 20 points in the index number of meat prices. “A comparison with indexes for October, 1925, shows the following differences: Groceries. 2 points increase, mostly due to alterations in sugar prices; dairy produce, a decrease of 96 points, again due to earlier seasonal reductions in the price of milk; meat, a 192 points decrease. Meat had reached almost its peak prices last October; this year it is showing a general and continued reduction. The index number for the combined food groups showed a reduction of 87 points during the twelve months.

"Expenditure on food constitutes somewhat less than two-fifths of the expenditure of the average household. It is necessary, therefore, to take into account other groups of household expenditure in estimating price movements. Statistics regarding house rents, retail prices of clothing and drapery, footwear, furnishings,. household ironmongery, and other miscellaneous items of family expenditure have therefore been collected as at August 15 and, combined with the index for fuel and light for October, in their proper proportions, the resultant ‘all eroups’ price index showing a level of 62 3 per cent, over that for July, 1914. It now takes 325. 4d., on the average, to purchase what 20s. would purchase in that month.”