Modest price rises expected soon

Press, 21 December 1976, Page 6

Modest price rises expected soon

By ;

JOHN McNEILL

Shoppers expecting a dramatic increase in the price of groceries when the price freeze is lifted on January I are in for a pleasant surprise.

.Although they mar not reflect over-all price rises, increases from Levers, Colgate Palmolive and General Foods, which have already been notified to grocery' wholesalers, average only 3.6 per cent. The sales manager tor the Supervalue Supermarkets and I.G.A. Premieri Stores (Mr Bruce Johnson): emphasised that the prices he quoted were the maximum! that could be charged. There was not going to be: a wave of increases, said Mr I Johnson. Companies still had] to notify the Department of. Trade and Industry of any. increase, which was allowed I every six months unlessl there were "hardship” l grounds Increases which had been notified were small, he said, and some included the higher tax on cosmetics. Packs of Surprise freeze- i dried peas had been in-! creased by 5 per cent for the 65g pack, which rose from 40c to 42c, while the larger, 130 g pack was 3c dearer at; 76c, an increase of 4.1 per; cent. Some toilet soaps among: them Knights Castile and' Lifebuoy, were up a cent to'

i but to remove them from i stock was to invite the pub-! lie to switch to another! brand, with the subsequent] I loss of the market share.] I Once lost, the share was [hard to make up. he said, land manufacturers usually ! preferred to carry' losses (than risk this. I Coffee did appear to be ini shorter supply, but a local | spokesman for a coffee manu- i facturer said that he would I be “very surprised” to see the 50 per cent increase that some people had predicted. I The world shortage of green beans after crop failures in Brazil and difficulties in Nigeria and other African States had pushed the price of beans up, but other factors affected pricing, including freight, packaging and . labour. If these could be held, i a 50 per cent increase in beans would not represent a I I consumer price rise of the I same amount. i But the spokesman said | [that the prices of most commodities were rising steeply, and with increases in freight, other imported goods could 'push the price of groceries i higher.

•22c a cake, a rise of 4.7 peri cent, Rmso had gained 2c to| 90c and was up 2.9 per cent,i .while no increase had been: notified for its competitor,] ' Persil. Lux Flakes had also in-j creased by 2c to 70c, a 2.9 .per cent rise, while Jif Liquid! I Scourer had also risen by 2.31 per cent, from 87c to 89c. I Sunsilk hair shampoo in !the 170 ml pack had increased from 51.36 to $1.39, ja 2.2 per cent rise, while Pears shampoo had risen 5.6 per cent from SI .98 to $2.09. Even though increases (were allowed from January ; ;5. old stock must be sold at (the old price. Mr Johnson said. It was illegal for anyone to alter prices and the ■ department watched this .carefully. No increase had been noti-. ified for coffee, said Mr John-j SOI. Another grocery spokes-[ man said he was sure that I jif there were any hold-ups I i in stock, these were not coming from the wholesalers. It|' ’ was understandable that([ ! manufacturers did not like ■ 'to incur losses on products,!