Food price index shows 1.9 per cent increase

Press, 17 November 1981, Page 2

Food price index shows 1.9 per cent increase

PA Wellington The food price index of the consumers price index for October, 1981, is 1.9 per cent higher than for September, 1981, said the Government Statistician yesterday.

The annual increase from October, 1980, to October, 1981, is 17.2 per cent. October’s 1.9 per cent increase corresponds to a 22 points rise in the food price index. The main contributions to this rise came from fresh fruit and vegetables, 6.2 points; meat 6.6 points; meals away from home, 1.6 points; soft drinks, ices, and. so on, 1.4 points; and dairy products, 1.2 points.

The food price index is down on the big high when between November, 1979, and November, 1980, food rose 20.5 per cent.

However, it does appear that the figures are climbing again. Between July, 1980, and July, 1981, the rise was down as low as 15.8 per cent. The 1.9 per cent rise last month was also the highest monthly rise since February’s 2.2 per cent. Over the 12-month period to October, the fruit and vegetables sub-group recorded a 17.7 per cent rise, while the meat, fish and poultry sub-group stood at 14.1 per cent. .

The highest single rise in the period was a 27 per cent increase in the price of dairy products. Cereals and cereal products rose 24.9 per cent. Selected other rises were; meat 13.8 per cent, fish 12.7 per cent, poultry 16.8 per cent, eggs 19.9 per cent, beverages 9.7 per cent and “other grocery foods” 9.2 per cent.

The food index is the only index in the over-all consumers price index which is prepared each month. Within the over-all consumer index, the food group contributed almost 20 per cent of the weight of the index. .The consumers index, which comes out quarterly, also measures clothing, housing, . transport and luxury items, as well as food.

The information is collected from the same shops on the same items by a fulltime research team. The Minister of Trade and Industry . (Mr AdamsSchneider) desribed the latest increase as a “good result.” “The prophets of doom have been forecasting inflation of 20 per cent next year. This result shows them to be totally wrong.”

He said the increase from

September to October of 1.9 per cent compared with 1.7 per cent from August to September. . “This apparent increase is well within the measurement error for the index as the recent revision of the index shows. In August, 1981, the figure initially released as 1.8 per cent was later revised to 1.6 per cent.” Mr Adams-Schneider said.

Commenting on the latest index figures, Labour's Shadow Minister for stabilisation, Mrs Ann Hercus, said they put the seal on the National Government’s record as the worst price-rise government in New Zealand’s history.

“The increase in food prices of 1.9 per cent in October is the highest monthly increase since February. It means that food prices are now 2% times as high as they were six years ago.” ■ -

Mrs Hercus said, much of the increase in prices was a direct result of decisions taken by the Government. Butter had increased in price from 36c to 98c in the last six years, milk from 4c to 25c a bottle, and bread had more than tripled in price, she said.