THE COSI OF LIVING

Hokitika Guardian, 6 January 1926, Page 3

THE COSI OF LIVING

FOOD L’RJCF.S NOW HIGHER According to the latest “Abstnut of Statistics,” food prices are now higher than they have been at any time prior to January, 1920. The retail price index (Dominion weighted average) for the three food groups (groceries, dairy produce, and meat) as at November Kith, was 1(567 (on the base; average prices for the four chief centres during t'.he years 1909-13 equal 1000), involving an increase of 1L points compared with the corresponding index for the preceding month and showing a. price level 55.8 per cent, above that for July. 1914 (viz. 1070). Food prices are now higher than they have been since October, 1921, ami “higher than they had been at any time prior to January, 1920. Prices of groceries have risen 20 points since last month: this is a usual happening at this time of the year, and is due In seasonal changes in the prices of potatoes and onions. A fall in the price of butter, partly offset by slight rises in eggs and in bacon in certain centres, accounts for a decrease of 15 points iu the dairy produce group. Meat prices, whidh had risen 158 points during flu* three months ended October 15th. 1925. have slackened in their rate of increase, some centres (notably Taihape and Hamilton) actually showing a fall in November; so that a net increase of (J points only is recorded for the meat group, whidh is now within 1(5 points of the prewar jieak level---'recorded in December. 1920. Even at- the present high level of meat prices, prices are not so high for this group relatively to the base period (the average of the years 1909 to 1913) as are prices for the groceries group.

In November. 1925. the index number for the ihive fond groups showed a level 88 points higher than the index number for • the corresponding month last year. The index number for groceries is 23 points lower this year than last, largely owing to the much lower prices now prevailing for sugar; on the other hand, the meat group ill November of this year shows a level as many as 254 points above that of the corresponding month last

year, while the higher prices now prevailing' for butler and ham, coupled with the fact that the price of eggs lias fallen loss sharply with the approach of summer than was the ease last year, account for an increase of -17 points in the dairy produce group. DOMESTIC EXPENDITURE. Expenditure on food constitutes somewhat less than two-fifths of the total expenditure of the average New Zealand household. Unlike the data

used for computing the price-indexes for food and for fuel and light, price quotations for the remaining items of domestic 'expenditure have hitherto been collected less frequently than at monthly intervals. If. nevertheless, the last ascertained price-indexes on base: July, 1914, equals 1000 for these heads of exrendituie—rent (that for August, 1925—viz., 17091, clothing, drapery, and footwear (that for November, 1925—viz., 1599, as compared with IG4G in July), and miscellaneous items (that for November. 1925 viz... 1690, as compared with 1743 in July)—were to bo combined in their proper respective proportions with the food price index for November, '925 (viz. 1558), and with the fuel and light price-index for November. 1925 (viz. 1748. as compared with 1749 for October, 1925)—the result would be to show an increase for the “all groups’’ retail price-level of G 3.3 per cent, over that for July, 1914. The fall of 47 points .since July, in the clothing group is due to a considerable drop in clothing and drapery, reinforced by a minor fall in footwear prices. Amongst the miscellaneous sub-groups all, save papers and periodicals (which remain stationary) exhibit a fall, the largest drop being recorded in connection with crockery, closely followed by fares (there have been minor reductions in train fares, and a considerable reduction in Wellington tramway concession fares on journeys of from three sections upwards), and the smallest falls being recorded in connection with the furnishings and the ironmongery subgroups.

COMPARISONS AVITH OTHER COUNTRIES.

Summarising a comprehensive com-: pa rat ire table of prices in other countries, it is pointed out that comparison of prices with other parts of the Empire is. on the whole, not unfavourable from a consumer’s standpoint, to the New Zealand cities, except as regards coal; while in respect of flour also New Zealand is less favourably situated from a consumer’s standpoint than any of the other towns considered, except Capetown. New Zealand is cheaper for raisins than Australia, despite the fact that the Commonwealth produces these articles on a considerable scale. Sugar, too. is very cheap in New Zealand. . . . Despite recent phenomenal rises in the price of meat in New Zealand, this commodity, like butter and cheese, is still exceptionally cheap in the Dominion relatively to its price elsewhere (with the possible exception of Australia). This is largely due to New Zealand’s greater distance from the world’s markets, the local price of our staple exports be-

I fug determined by London prices, dianinished by the cost of shipping and handling, deterioration on the voyage, etc. ... “ . . . . Owing to the greater bulk in proportion to tbe value of meat 'than of dairy produce, these transportation costs are much greater relatively to the value in the case of meat; lienee the greater difference between Now Zealand and London prices in the ease of this commodity than in that of butter and cheese . . . .”