THE COST OF LIVING TO-DAY.
OFFICIAL CALCULATIONS. To show in accurate fashion, according to statistical methods, how the war has affected the co6t of Kving, Mr. Malcolm Fraser, Government Statisician, sas devoted a special chapter of his report on the course of prices. To this interesting phase he points out that the comparisons which have already been made between the June quarter are raised in each year by the winter prices of such commodities as milk and butter. In normal-' times the priee level should have fallen slightly n the summer months, whereas, owing to the war, it continued to rise. A Comparison.
As a rort of statistical standard, or starting point of comparison, the statistician set down the figure 1000 as representing the average annual' aggregate expenditure upon foodstuffs (groceries, dairy produce, and meat) in 25 New Zealand towns during the period 1909 till 1913. With basis to start from he reduces all the prices prevailing on 31st July, 1914 (before the war( and on 31st May, 1914 (before the war) and on 31st May, 1915 (after Ift months of war) to a common factor resigned to clearly show the percentage increases. During that period prices in the principal towns increased as follows :■ —Auckland 7.98 per cent., Wellington 12.93, Christehureh 7.72, Dunedin 13.63, Gisorne 18.55, Napier 16.96, New Plymouth 10.55, Wanganui 13.01, Palnierston North 20.61, Nelson 7.38, Greymouth 9.43, Timaru 11.78, Oamaru 14.73, Invercargill 16.64. The average riße throughout 25 representative towns was 11.31 per cent. Fairly Uniform Rises.
It is evident, says the report, that the increase is fairly uniform over most of the towns, though the lower figures for Auckland and Christchurch are directly due to the increased price of meat in those towns. The highest increase in food prices has been in Pahnerston North, 21 per cent.; the lowest in Nelson. 7 per cent.; while the Dominion weighted average shows 11.31 per cent. The Chief Items. So many statements of the increase in the cost of living have appeared within the last few weeks that it is desirable to state exactly the data on which the present estimate is based. It is very evident that many prices have increased more than 11 per cent. For in- , stance, butter which was quoted in I May, 1915, at 1/3 per lb, had risen in May, 1915, to nearly 1/7, an increase I of 24 per cent. ■ Similarly, bread has increased from 3£d to sd, nearly 43 per , cent., but on the other hand potatoes, which in July were 1/- for 141 b, were in May only 1/1.42 for. 141 b, an increase of 12 per cent.,, while items like f tea and soap have remained unehangI ed in price over this period. It is im(possible and inaccurate to state, any I increase of general prices from a few ! items which may or may not have risen equally with other items. Rents Going Down. The one bright spot in the report is a statement that since the outbreak of war rent has shown a tendency to decrease, the average decrease over the Dominion being about 1* per cent., and if this item of rent is added to other groups it bulks so largely that the eost of living does not appear to have risen so greatly as is really the case. The great majority of householders j have not yet been affected by the fall in rent, so that the increase in the cost J of living is best shown in the three J food groups alone. The Cheapest Towns. In the finals chapter of the main report the statistician indulge* in vr interesting hunt -for the ohe&ptut p]««* t-e lm* fa, ai*d sqis?6 U; thf iok-*>p%]
conclusions: —Wellington stands out as easily the most expensive towti in New Zealand, with Napier and Invercargill next. Wellington owes its position primarily to the extraordinary level of rents which prevail' in that town. After Invercargill comes Gisborne, Kotorua, Taihape, Dunedin, and Nelson. The cheaest town is Waihi, which again owes its position to the influence of rent as does Alexandra. The second' town, Dannevlrke, is also in a good position, and Wanganui, Blenheim, and Masterton. Christeaurch is the best of the four centres, cltosely followed by Auckland. Both of these towns show low rents and owe their position in the table to this fact. Dunedin 'is rather higher, and of course, Wellington is the highest of aM the towns in New Zealand.
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Bibliographic details
Taihape Daily Times, Volume 7, Issue 263, 31 July 1915, Page 8
Word Count
741THE COST OF LIVING TO-DAY. Taihape Daily Times, Volume 7, Issue 263, 31 July 1915, Page 8
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