FOOD PRICES RISE BY 3.6 PER CENT

Press, Volume CVI, Issue 31320, 16 March 1967, Page 1

FOOD PRICES RISE BY 3.6 PER CENT

The food group index of the Consumers’ Price Index released today by the Government Statistician shows that food prices were 3.6 per cent higher in February, 1967, than they were in the previous month.

The February all foods index (on base 1965=1000) was 1078 compared with 1041 in January. The fruit and vegetable sub-group contributed 10 points, the meat and fish subgroup 3 points and the other food sub-group 24 points to the upward movement. Substantial upward contributions to the all food group were caused by price increases in butter 10 points, bread 11 points and flour 2 points. Seasonal fruit and vegetable prices contributed 10 points, pork 3 points and meals away from home 2 points. Various other smaller increases and decreases accounted for the balance.

It Is normal practice for the collection of prices to be spread over most of the month. Consequently some of the index towns would have been priced by February 13, the date from which the subsidies on bread, butter and flour were removed. Furthermore some towns priced on and after February 13 were still charging the old prices for these items. For these reasons all of the direct effects of lifting subsidies have not been reflected in the February all food index. At the base period—calendar year 1965—f00d represented 30.09 per cent of the total expenditure covered by the Consumers’ Price Index. This is the only group for which prices are collected each month, the complete allgroups index being a quarterly compilation.