THE TREND OF PRICES

Ashburton Guardian, Volume XLVI, Issue 10685, 31 December 1925, Page 8

THE TREND OF PRICES

COST OF GROCERIES.

AN INCREASE SHOWN.

OHRISTCHURCH, This• Day. The Government's "Monthly Abstract of Statistics" says:— . . The retail price index (Dominion weighted average) for the three food croups (groceries, dairy Produce and £est) as~at November 16 was 1667 (on 8?W. average prices for the four y chief centres durmg the year 1909 to 1913 equals 1000), involving crease 6f 11 points as compared with the corresponding index for the preceding month, and showing a pnce levelts 8 per cent, above that for July, 1914 (viz.. 1070). Food prices are now higher than they have been since October 1921, and higher than they had been at any time prior to January, 1920. , or Prices of groceries have risen. 2b points since last month. This is a usual happening at this time of the year and is due to seasonal changes m the prices of potatoes and onions. A fall in the price of butter, partly onset by slight rises in eggs and in bacon in certain centres, accounts for a de"i crease of 15 points in the dairy produce group. Meat prices, which had • risen ~SS points during ,ge three months ended October 15, 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 s£i joints only is recorded for the meat group, which ib now within 16 points of the peak level—recorded in December, 1920. Even at the' present high Wei of meat prices, prices are not sotjhigh for this group relatively to the bas*i- period (the average of the years •190 ff to 1913) as are prices for the group. * In November, 1925, the index number for the three, food groups showed a* level 88 points higher than the ■ lndexf number/ for the corresponding month last year. The index number is 23 points lower this 'yearthan last, largely owing to the prices now prevailing for sugar; on the other hand, the meat - group in November of this year shows WTSveT'as u)ariy as'-'2s4'.points above /Jfifa-fr oT''the'corresponding month last year; ifie higher prices now vailing for butter and ham, coupled •«ftfch the fact that, the price of eggs hag' 'fallen less sharply with the ap- ' tirOach rf gammer than was the case &stl year, account i-for an increase of 4f points in the>dasfy produce ?roiip. "".*'bvaifirir- :■•»? s> :":• '/■'■ v ' ! - •' iHfi f V Domestic Expenditure.

Expenditure on, food constitutes somewhat loss than two-fifths of the total expenditure of the average New Zealand household. Unlike the data used for computing the price indexes foiT'-food and f o r fuel and light, price quotations for the remaining items of domestic expenditure have hitherto hfeqifc .collected less frequently than at monthly intervals. If, nevertheless, v the ‘last ascertained price indexes oil -bMd; Julyi 1924, equals 1000 tor these . v fteaait .of expenditure—rent (that for August, 1925, viz., 1709), clothing, dra--4 pery and footwear (that for November, 1925, viz., 1699, as compared with 1646 to Jtily)j and miscellaneous items (that) for November, 1925, viz., 1689, as compared -with 1743 in July)—were to be combined •in their proper respective proportions frith the food price index w November, 1925 (viz., a 553), 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 bhowanincroase for the groups’ V retail price level of 63.3 pier pent. over that for July, 1914. i'Shd-tßll of <47 points since July in the gdbthing group is duo to a considerdble'drop in ' clothing and drapery, reinforced by a minor fall in footwear prioea. Amongst the miscellaneous sub- • groups’ all save papers and periodicals 7 (which remain stationary) exhibit a largest drop being recorded in «,connection -with crockery, closely followed by fares, (there have been minor V reductions in train fares and a considerjiWei|jneduction 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 iromnong--ery . sub-groups.

'An Empire Comparison. oomparisoiia of prices with other parte of the Empire is, on the whole, nofjtjnfa'vourable from -the consumer’s standpoint to the New Zealand cities amsiciered, ■ '%&- rfegairil&' chal; respect bf flour also-New iess' r fardarabiy situated';front' staiidpoint than any of tbie ; other -towns considered, except -Citpefown. New Zealand is cheaper for raisins than Australia, despite the fdfcri’' tß«t the' Common wealth produces tei3s lf 4rfci6lels r on a' eonsideiable, scale; price,is maintained by a protective import duty of 3d per lb, while on the Now, Zealand mar ket the price is kept low by the absence of an import duty, coupled with keen competition, from other producing countries, notably California. Sugar, too, is very cheap in New Zealand, and for somewhat similar reasons. Despite the recent phenomenal rise in the price of n»eit',in OSTew Zealand, this commodity, like" butter arid 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 prices of our staplg exports being determined by the London prices diminished by the cost of shipping and handling, deterioration on the voyage, etc. Owing to the greater bulk in proportion'to’the value of meat than of dairy produce, these transportations costs are much greater relatively to value in the case of meat; hence the greater differences between New Zealand and London prices in the case of this commodity than in "that .of butter and cheese. V- -■> - , .