THE COST OF LIVING

Otago Witness, Issue 4029, 2 June 1931, Page 69

THE COST OF LIVING

DOWNWARD TREND OF PRICES COMPARATIVE FIGURES QUOTED. . WELLINGTON, May 29. The Minister of Internal Affairs (Mr P. A. de la Perrclle), commenting to-day on the trend of prices, said that there had been very many reductions lately in the cost pf commodities, and he quoted comparative returns showing the reductions in several essential items of food and clothing. “ There is no doubt,” said Mr I errelle, “ that business people in the line with the curtailment of salaries and wages are, so far as they can, cutting down the cost of household commodities/* The Minister referred to the list prepared by the Government Statistician demonstrating the fall in the index figures for food, fuel and light, clothing, boots and shoes, etc., and said that between the first quarter of 1929 and the coi responding period of 1931 the retail priceindex number (including rent) fell by 6 2-3 per cent., while some important foodstuffs, notably bread and flour, showed less than this fall. Such items as meat, potatoes, butter, milk, and sugar had fallen to a much greater extent than the average for all commodities. Mr Perrelle added: “It is of interest to take a few of the more important commodities and gauge the savings to the housewife represented by the recorded decrease in price. The latest statistics of the total annual consumption per head of the principal articles of foodstuffs are as follow:—Butter, 34|lb: fresh beef. 1561 b; mutton and lamb. 871 b: bacon and ham, 1441 b; sugar, 861 b. From these figures the approximate weekly consumption of these items in the average family, is shown to be:—Butter, 31b; beef, 131 b; mutton and lamb, bacon and ham, lilb; sugar, 7ilb. A fall of 4d per lb in butter prices represents a saving of Is per week in the average family expenditure. Beef prices are shown to be decreased Id to IJd per lb. Taking the average decrease in the prices of beef at lid per lb, a further saving of Is 4d' per week is noted. The very considerable fall in mutton prices compared with the prices ruling two years ago (approximatelj’ 3d per lb all round) will represent a deduction of Is lOd from the weekly expenditure. The fall in bacon' and sugar prices represent a decrease of 6d per week in the household accounts. Assuming the moderate consumption of one pint and a-half of milk per day by the average household, a reduction of la per quart in this item represents a saving of 5d per week, while even the slight fall of id per 21b loaf recorded in the price of bread reduces the family account for this item by 2d per week. This is an inconsiderable saving in itself, but when added to the decreases in the items already shown makes up quite an appreciable fall in the weekly outgo. The decrease in the weekly household expenditure on these essential food items alone totals over 5s without taking into account the smaller items in this class. Clothing, drapery, and footwear items account for approximately 124 per cent, of the expenditure of the average household.

“ From the small selection of items included in this review of prices it is apparent that considerable savings in the expenditure on this important item in household accounting can be made, and the fall in prices in this group of commodities is even greater than is assessed by the official figures, for the abnormal selling conditions prevalent at the present time in the clothing trade enable the careful buyer to effect savings of up to 30 per cent, in this type of expenditure. Special lines of goods are being sold at sacrifice prices in order to attract custom, and the bargain seeker can, by taking advantage of the shopkeepers’ dilemma, secure household requirements at a greatly reduced figure.”