POSITION UNCHANGED

Wairarapa Times-Age, 16 July 1943, Page 4

POSITION UNCHANGED

DURING PAST SIX MONTHS WAR TIME PRICE INDEX. MINISTER'S OBSERVATIONS. (By Telegraph—Press Association.) WELLINGTON, This Day. The unchanged position of the all group figure of the war time price index during the last six months was an indication of the success being achieved by the Government stabilisation programme, the Minister in charge of stabilisation, Mr D. G. Sullivan, said today. “Although the all group figure remained unchanged, there were movements within the groups and subgroups," Mr Sullivan said. “Fresh vegetables and eggs showed an increase, but other seasonal items,, such, as potatoes, onions and apples, showed a decrease. In the early part of the year control of the prices of basic vegetables was not complete, consequently rises in their prices had a marked effect on the March figure. Since then control has been extended and this is reflected to some extent in the present level of the index.” A contributing factor, the Minister added, was the low price maintained for potatoes, which were subsidised by the Government by a halfpenny a pound, to offset a posible rise in vegetable prices. The subsidy ceased tb operate on June 30. In working out the index of the prices of essential commodities, Mr Sullivan continued, everything had to be given its proportionate place and importance in accordance with the average amount an average family would spend on it. That was what the war time price index was doing. It took in foodstuffs, rent, fuel, light, essential lines of footwear, clothing, drapery and such miscellaneous items as transport fares, crockery, household cleaning supplies, tooth paste, razor blades and even school stationery, but it did not include nonessentials. The prices of essentials, such as bread, flour, oatmeal, sugar and butter had remained unchanged since the outbreak of war, although they had risen- from 34 per cent to as much as 80 per cent during the last war. The process of stabilisation went far beyond prices, however, as a considerable part of the scheme was directed towards holding down the costs of production.