Food prices show sharp increase

Press, 11 June 1979, Page 1

Food prices show sharp increase

PA Wellington Food prices in May this year were 18.2 per cent higher than in May, 1978, according to the Government Statistician (Mr E. A. Harris) yesterday.

The rise in the prices of meat exports was still the major factor affecting domestic food prices, said the acting Minister of Trade and Industry (Mr Quigley). “Meat prices have accounted for about onethirc of the latest rise,” he said. “There have also been a number of further effects fron. the reduction of Government subsidies last month. A number of items which have as their ingredients. these various commodities, have also risen in price. These include biscuits, soft drinks, ice-creams, chocolate, and sweets,” said Mr Quigley.

“The Government expected that the reduction in these subsidies would work its way into the system as the index shows,” he said. The latest food price index was "another step in a remorseless tide,” said the Opposition’s spokesman on consumer affairs (Mr R. O. Douglas). “The index shows the steady, weekly increases in all basic items in the family shopping basket that are driving many housewives to a point of

despair,” said Mr Douglas.

He said he knew from his own Manurewa electorate that many housewives were simply at “rock bottom.”

The food group index of the consumers price index for May was 1223 (compared with a base of 1000 for the December, 1977. quarter) and 1202 for April, 1979, according to Mr Harris.

Of the 1.7 per cent increase, 0.2 per cent came from the fruit and vegetable subgroup, 0.8 per cent from the meat, fish and poulty subgroup, and 0.7 per cent from the other-foods subgroup. The following sections contributed at least half a point to the 21-point movement in the all-food index: Fresh fruit and vegetables, 2.1 points; meat. 7.4 (including beef and veal cuts 4.9 and hogget and lamb 0.6); smallgoods and prepared meats, I.R (mince 0.8); fish 1.4 (wet fish 0.9); poultry, 0.5; cereals and cereal products, 1.3 (biscuits 0.7, cake 0.5); other grocery foods, 0.9 (sugar 0.6); soft drinks and ices, etc., 2.4 (soft drinks 1.0, ice-cream 1.1); sweets, chips and nuts, 0.7 (chocolate block 0.6); meals away from home, 2.1; takeaways 1.3. The other sections of the index showed minor movements, adding to the balance of 0.9 point.