SHRINKING SOVEREIGN

Hokitika Guardian, 25 June 1920, Page 4

SHRINKING SOVEREIGN

NOW DOWN TO 11/B*. D'ECIfcEAiSJO in PUIiCHAiSING POWER THIS YEAR, The current number of the “Monthly Abstract ol Statistics’’ shows that the purchasing power, or relative worth of the sovereign, as measured by the retail prices of groceries, dairy produce,. and meat was down as low as 11/8i in the March quarter of the present year, taking as the base, or 20s, the average worth in relation to the same food groups, of the sovereign in the years 1909-13. The following figures show, for the March quarters, tho steady decline in the value of the sovereign since 14)14 : —March quarter 1914, 18s lOd; 1915, 16s 10*d; 191*6, 16s lid; 1917, 14s. 93d; 1918, 1.3 s 113 d; 1919, 13s lid; March quarter, 1920, 11s BJd. It will be noticed that the shrinkage of the sovereign between March, 1919, and March 1920, is greater than for any similar period, except between March, 1914, and March 1915. .Another table shows that, taking tho average worth of the sovereign in July 1914, as the base !(205.) tho sovereign was worth 14s o’d in the March quarter of 1919; and in the March quarter of 1920 it was worth 12s 6*d. Putting it another way, food which, on the average of the four centres would have cost 20s in 1909-13 and 21s 73d in the year 1914, cost 30s 5d in the March quarter of. 1919 and no less than 34s 2*d in the March quarter of 1920. FOOD, RENT, FUEL, AND LIGHT. The steady increase in the cost of living since the signing, of the Armistice is clearly indicated in the following table, showing, for the periods stated, the six-monthly average percentage increases in prices over the average for the six months ended July, 1914 :

J -*-> r C -p" 5 a .to o S° c 5 -c •zi ,2 0 ■— X c cc 0 0 r o Ph 0 w Jan., 1919 43.64 30.87 31.63 Dec., 1919 ... 49.44 35.48 37.69 Jan., 1920... 51.68 37.12 39.93 Feb., 1920 ... 53.93 38.65 40.96 Mar., 1920... 56.17 40.38 42.69 April 1920 .. 58.32 41.92 44.42