Call to hold food price rises

Press, 12 June 1984, Page 2

Call to hold food price rises

PA Wellington The Minister of Trade and Industry, Mr Templeton, has again urged traders to restrict price increases. He was commenting on the food price index which was 0.9 per cent higher in May than for April. The Statistics Department said significant price rises for butter, bread, potato crisps, meals away from home and takeaway fried fish were responsible. The annual increase in the food price index for the consumers index to May was 5.5 per cent, compared with an annual increase of 5 per cent to April. Mr Templeton said that while some increase was expected, it was satisfying to see the May results were lower than last month’s. The food price index rose 1.3 per cent in April. “This is especially encouraging considering that once again the increase can be traced to significant contributions by only three or four items,” he said. “There is evidence of delayed action by some smaller traders in recovering costs in these areas after the expiry of the price freeze. “I would like continued co-operation of traders in restricting the magnitude of their price increases,” Mr Templeton said. The director of the Consumers’ Institute, Mr David Russell, said yesterday that the prospects of inflation now staying below 5 per cent this year were “not exactly brilliant.” “It’s good to see the increase was not as great this month (May), as it was last month (April), but from a consumer’s point of view we would have liked to see it considerably less. “We can only hope that manufacturers and service industries will take heed of the Government’s guidelines of 5 per cent, but it looks a little tenuous at the moment,” he said.