Grocery prices up by fractions?

Press, 26 August 1982, Page 6

Grocery prices up by fractions?

PA Wellington Grocery manufacturers had been asked to agree on a formula for fractional price increases, said the commerce director of the Trade and Industry Department. Mr D. J. Gasson. yesterday. A list prepared by the Master Grocers' Association shows that spices, porridge, some flv sprays, chewing gum. shortbread, biscuits, cigarettes, and tobacco have gone up because of more expensive freight rates and tax changes in the Budget. Under the Price Freeze Regulations such increases are allowed but the problem of how to implement the rises has caused a slight difference of opinion. In-many cases, items have gone up by only a fraction of a cent. Grocers have traditionally rounded out rises to the nearest cent. “We are either rounding it up to the nearest cent or giving it awav entirely,” said Mr B. C. Turley, secretary of the association. “It has been done like that for years ”

But. said Mr Gasson. "it might have been done for years but they have not had this amount of price control for years.” ' If grocers put up prices byeven a fraction more than was necessary, it would be unlawful." said Mr Gasson. “If we let them go up by a whole cent, consumers are disadvantaged and we are defeating the Government's desire to curb inflation." he said. “If an item goes up by a quarter of a cent and it is rounded up to an increase of Ic, that is unjustified." If the practice continued.

he might ask his Auckland officers to investigate the increases. However, he had been in touch with a representative of grocery manufacturers over a scheme that could solve the problem. This would put up the price of a single line to cover the increases in other lines. "In that way. the consumer would probably be least affected." Mr Gasson said. The manufacturers' response had been encouraging. but they had not yet agreed to the proposal, he said.