Consumers’ Price Index Shows Further Rise

Press, Volume XCVIII, Issue 28795, 16 January 1959, Page 14

Consumers’ Price Index Shows Further Rise

The all-groups consumers’ price index rose by 7 points in the last quarter of 1958 with increases m the prices of food, housing, clothing, footwear, fuel and lighting, home furnishing, domestic supplies and services, and transportation, over the previous quarter of the year, according to the Department of Statistics. The index now stands at 1137. This means that there has been a rise of 137 points—or 13.7 per cent. —since the index was revised in 1955. The index base figure was set at 1000 in 1955 on average prices then ruling. Fruit, vegetables and eggs showed the steepest rise in prices during the quarter. There was an increase from 1047 points in the third quarter to 1094 points in the last quarter. This was a rise of 4.5 per cent. Meat and fish rose by 0.8 per cent., but other foods cost 0.1 per cent, less, taking the average for all food to 1.3 per cent., dearer than in the third quarter. Rents climbed fractionally from 1162 points to 1167 points, but home ownership cost 1.4 per cent, more. The cost of all household operations, taking into account fuel and light, home furnishing, domestic supplies and services cost 0.2 per cent more during the quarter.

' Both footwear and clothing cost 0.6 per cent. more. Footwear rose from 1123 points in the third quarter to 1130 points in the fourth quarter. Clothing prices increased from 1007 points to 1013 points.

Travelling by public transport cost 0.2 per cent. more. The cost of private motoring went up by 2.2 per cent, from 1232 points to 1259 points. This was caused mainly by the higher cost of new cars and increases in the price of repairs.

The increase of 7 points in the all-groups index for the quarter may be compared with the increase of 50 points in the third quarter of the year and the 11 points increase in the second quarter. The total of nine and a half points increase was offset by a downward thrust of two and a half points in the misellaneous group, making the net increase seven points.

Increased costs for home owners mcluded both the delayed effect of dearer building costs and dearer finance and also increased property rates.

The separation of the quarterly index numbers into individual towns shows that Christchurch’s prices showed greater rises than in any of the other three main centres. A rise of 11 points, from 1128 points to 1139 points, still leaves Christchurch behind Dunedin (1145 points) in total increases in prices since 1955.

Of a total of 21 towns and cities examined in the survey, only Blenheim, with an increase during the quarter of 12 points, exceeded Christchurch’s rate of increase. Greymouth also showed an increase of 11 points during the quarter. The town with the greatest increases in prices since 1955 is now New Plymouth, where the index now stands at 1147. At the end of the third quarter, New Plymouth had shared this distinction with Dunedin and Tauranga.