PRICE MOVEMENTS

Ashburton Guardian, Volume 53, Issue 149, 5 April 1933, Page 3

PRICE MOVEMENTS

WHOLESALE AND RETAIL. NEW ZEALAND STATISTICS. (Special to the "Guardian.") WELLINGTON, April 4. Figures in the March issue of tht "Abstract of Statistics" show that export prices for February are 19.4 pei cent, below the prices ruling in 1914. The index numbers of dairy produce prices' for February shows a fall of 0.7 per cent., when compared with the prices for December last. In referring to retail prices, the "Abstract" stated that the Dominion weighted average index number of retail prices as at February 15 was 26 per cent, more than July, 1914, prices. The latest all-groups index showed a decrease as compared with the immediately preceding -figure, which related to prices on November 15, 1932. Food prices were on the average 2.8 per cent, higher on February 15 than on the corresponding day in January. Increases in the index numbers for individual groups included in the combined food groups index were: Groceries 2.7 per cent., dairy produce 6.4 per cent., and meat 0.4 per cent. Compared with November 15, 1932, however, the latest date prior to February, 1933, for which the all-groups index is available, food prices on February 15 showed an average decrease of 2.4 per cent. The index number of house rents on February 15 showed a fall of 5.2 per cent., since the previous collection (in August, 1932), and an increase of 44.7 per cent, oyer the July, 1914, index. The index number for the clothing, drapery, and footwear group had increased by 1.8 pea- cent, since November 15, 1932, while that for the miscellaneous group had advanced 1.7 per cent. The increase oyer July, 1914, prices was 16.3 per cent, in the former case and 61.6 per cent, in the latter. "It seems desirable," the "Abstract" continues, "to point out that the final effect of the imposition! of the sales tax and, to.a smaller extent, of the raising of the exchange rate, would not be reflected in the retail price index numbers as at February 15. In several instances, particularly in the clothing and miscellaneous groups, firms which showed no increases in retail prices indicated that this was due to the fact that there had been no recent replacements of stocks. On the other hand, many of the increases which had been made by February 15 were no doubt tentative and would be revised (upward or downward) when the ultimate effect of the imposts became apparent." Wholesale Prices. Discussing wholesale prices the "Abstract" states that tne general index number of the wholesale prices (on the basis of average prices ruling during 1909-13 per 1000) for February was 1315, an increase of 24.9 per cent, over the index for the year 1914. An increase of 3.3 per cent, had been recorded since December, 1932. On an analysis into locally-produced items had fallen on an average of 7.2 per cent, since December, the extremely low prices ruling for potatoes and onions, together with the reduction in oats, wheat, and flour prices, more ■than offsetting the increases in the wholesale prices of butter, wool, and meat. The index number for imported commodities, however, had risen by 15.4 per cent, since December last, the effects of the imposition of the sales tax and (for certain commodities) the raising of the exchange rate being reflected in wholesale prices earlier and perhaps more fully than in retail prices. The general index number- of export prices for the month of February, 1933, was 877, a decrease of 19.4 per cent, compared with export prices ruling during the year 1914. In view of the interest attaching to the comparison with the last complete month preceding the increase in the exchange rate, the following table, showing the export price indices for the more important groups in December, 1932, and February, 1933, is given:— Dec. Feb. Dairy produce ... 839 833 Meat ... 1087 1192 Wool 527 643 Other pastoral produce 617 589 All pastoral and dairy produce 799 851 All groups 822 878 Commenting on this table, the "Abstract" stated that the index number of dairy produce prices had fallen by 0.7 per cent., the influence of the increased exchange rate being insufficient to counteract the fall in sterling prices. The index number for the meat group had increased by 9.7 per cent, since December, 1932, while that for wool had advanced by 22.0 per cent. In the latter increase it should be noted that the December. 1932, index for this group (527) was exceptionally low, the November, 1932, index haying been 73 points higher (600). The index number covering all pastoral and dairy produce had increased by 6.5 per cent, since December, while that for all groups combined has increased by 6.8 per cent.