THE PRESS THURSDAY, AUGUST 11, 1977. Food prices up again

Press, 11 August 1977, Page 18

THE PRESS THURSDAY, AUGUST 11, 1977. Food prices up again

The 1.8 per cent rise in food prices last month (reported on page 2 of this issue) carries the index of these prices beyond 1500—a reminder that food prices are now 50 per cent higher than they were in December, 1974, the base period for calculating this index. The average monthly increase over the previous 20 months was 1.3 per cent.

Last month’s increase was, however, not the highest in the series; in February (2.9 per cent), April (2.1) and in September (2.7) last year, and in May this year (2.5 per cent), much higher increases were recorded. These figures are of little comfort to the hardpressed housewife —just as the frustrated gardener finds no comfort in the knowledge that last month was “only” the second-wettest on record. There is almost certainly a connection between the wet weather and the high food prices in July: the digging of root crops

and the picking of green crops were hampered by the weather, reducing the quantities available and hence contributing to the substantial—3.l per cent —increase in fruit and vegetable prices. Unless the August weather is equally unkind, a smaller increase, or even a small decrease, in these prices should moderate the rise in all food prices. Last month’s increases in cocoa and coffee prices should be followed in due course by decreases, as lowerpriced imports reach New Zealand. In short, the exceptional causes of many of the price rises last month should not be repeated and may even be reversed this month. Even so, the current level of food prices—almost 18 per cent higher than a year ago—must remain one of the Government’s major political concerns, as well as the most pressing financial problem in many households.