LIVING COSTS HIGHER

Press, Volume LXXIV, Issue 22491, 27 August 1938, Page 17

LIVING COSTS HIGHER

"Workers Better

Off"

RETAIU PRICES AND

WAGES

Department Claims A.

Favourable Margin

Figures said to support a claim that the standard of living of worSer has risen by 10 per cent, between 1935 and 1937 are given in the annual report of the Department of Industries and Commerce in a survey of cost-of-living trends. The department emphasises its activities to prevent any unjustified rise in prices.

"A constant watch has been kept by the department on the trend of prices - during the year," the report says. "Particular attention has been paid to movements in retail prices, and every endeavour made to prevent such prices rising more than was fully justified. The extent of the movements in fee various groups, as expressed .by the official index numbers, comparing March 31, 1938, with the same date in ~ 1937, are as follows: "Retail Prices—The 'all groups' index number rose by 43 per cent. In this group foodstuffs showed the largest increase, with 6.5 per cent, made.. up of meat, 8.6 per cent; dairy-pro-duce, 6.5 per cent; and groceries, 3.4 per cent. The next largest increase was in the case of clothing, drapery, and footwear group, with. 6.4 per cent Bents were 2.8 per cent higher, and fuel and light showed the relatively small increase of L 3 per cent The miscellaneous groups index was higher by 1.9 per cent "Wholesale Prices—The *all groups* index number of wholesale prices in March, 1938, was 3.4 per cent higher than it was a year previously. To this increase the index of locally produced goods contributed 3.7 per cent, and that of imported goods 3 per cent

Meat Prices "Of the various groups which •went to make up the average for the whole, the group showing the largest increase was that for meat, which was 1&2 per cent, higher than it was a year earlier. The only item which recorded a reduction was 'semi-manufactured animal products (not foods).* This heading includes wool, hides, skins, and tallow, and the index was 38.7 per cent, lower. Wood and wood products were 7.4 per cent, higher, and agricultural produce had advanced by 3.6 per cent ._ .. "'Other foodstuffs and groceries- -"' of animal origin' were higher by JET per cent, as were metals and their products by 5.1 per cent, and textile manufactures by 2.8 per cent Other recorded increases were chemical and manures, 1.2 per cent; mineral oils, HI per cent; coal, 0.9 per cent; other non-metallic minerals and their products, 1.3 per cent; mixed agricultural products, 0.9 per cent; other vegetable products and groceries, Oo per cent; and leather, 0.4 per cent "Export dex of prices for goods exported showed a slight fall of 0.4 per cent. This relatively small decline, however, was made up of large increases and decreases. The index of dairy produce prices in March, 1938. was 215 per cent higher than it was a year earner, and meat prices showed a corresponding rise of 9.3 per cent The only other increase was in the case of minerals, the index for which was JET per cent higher. AH the other groups recorded a fall in their indices, trie largest being that of wool, which was 33.2 per cent lower. The other "pas- „ toral produce' index was 19.0 per eeh£-'A-» lower, that for agricultural produce was down by 5.0 per cent, and the timber index was 10.4 per cent lower. Wage Bates Higher "Effective Wage Rates—On the base 1926-30=1000 the nominal wage-rate index in March, 1938, stood at 1063. This was 205 points higher than the index for the year 1935. and represented an increase of 23.9 per cent. Over the same period retail prices advanced by 105 points, from 837 in 1935 to 942 in March. 1938, an increase of 12.5 per cent On the 1926=1000 base, the effective wages-rate index stood at 1025 in 1935, but by March. 1938, this index had risen to 1128, an advance of 103 points, or 10 per cent Thus, on the basis of wage rates, the -.--"» above figures show that the standard of living of the workers rose during the two years by 10 per cent ."--__-.'*

Measures for Control "Control over prices has been, exercised by the department partly through the fixation of the prices «f certain commodities under the provisions of the Board of Trade Act, and also through the administration of the Prevention of Profiteering Act. Other sections of this report cover the various commodities the prices of which, are fixed under the Board of Trade Act The Prevention of Profiteering i _ i _ Act is designed to prevent prices from ~ - being raised to a greater extent than is warranted by any additional costs which are incurred by a seller, either „. for the actual goods or services sup- ' plied or in the general expenses of operating his business. Under the provisions of this act, a large number of investigations have been conducted into the prices of many commodities and services, and covering a vide . range of industries and trades. In a number of instances, where it ap- " ■ peared that a particular price had been raised more than was reasonably jus- .*- * tified on account of increases in costs, a reduction in prices was made, ami "- in some cases refunds of portions at' ' purchase money have been made. "In addition to the special investigations which are being made all the time under the act, a continuous check - ~ - " is maintained on the prices of the items which figure largely in the ~ household expenditure of familw;, such as foodstuffs and clothing. The existence of the act and the continual investigational work carried out by the department have provided a powerful check on any tendency for exploitation of the consuming public through. the device of raising prices."