Grocery prices rise 6.6 pc after GST

Press, 11 October 1986, Page 28

Grocery prices rise 6.6 pc after GST

PA Wellington Grocery prices have risen 6.6 per cent since the introduction of goods and services tax, according to an assessment once used by the Minister of Social Welfare, Mrs Hercus. Several years ago, Mrs Hercus used a standard shopping basket list to keep track of rising grocery prices. The “Dominion” newspaper has used the same list as the basis of a survey to check prices on September 25, before GST, and now.

The price differences show that Government predictions on the effect of GST appear to be about right at this stage. The survey checked the prices of goods in shops run by two supermarket chains, Woolworths and New World. It showed a fractionally higher level of price increases at Woolworths than at New World, though the range of goods checked in each shop was different. The range at New World included a slightly higher proportion of items

that carried 10 per cent wholesale sales tax before September 30. Most of these items have stayed at the same price in both shops. The total price of a week’s shopping, as measured by the basket, rose from $76 before GST to $81.05 afterwards, an increase of $5.05. In some cases, such as fresh meat, fruit and vegetables in particular, there may also be price changes unrelated to GST. Prices of these goods vary_ week by week.