COST OF LIVING

Dominion, Volume 20, Issue 78, 27 December 1926, Page 8

COST OF LIVING

DEARER SUGAR; CHEAPER BUTTER

The retail price index (Dominion weighted average) for the three food groups as at November 15 was 1565 (on base: average prices in four chief centres during the years 1909-13—1000), a decrease of 4 points since the previous month (states the Abstract of Statistics for December). This index number shows an increase of 46.3 per cent, over that for July, 1914. The minor increases in the price of sugar, together with the now general sale of this season’s potatoes, have accounted for the 4-point rise in the index number for the groceries group. The slight but widespread reduction in the price of butter is the cause of the 16-point decrease in the index number of dairy produce. Meat prices are almost stationary, with a falling tendency; the index number for this group has decreased 7 points. A comparison with indexes for November, 1925, shows the following differences: Groceries, 20 points decrease; potatoes are considerably cheaper this year; dairy produce, a decrease of 97 points, due to the greatly reduced price of butter; meat, a 227-points decrease. Meat had reached its peak prices last November; this year it is showing a general and continued reduction. The index number for the combined food groups showed a reduction of 102 points during the twelve months. Expenditure on food constitutes somewhat less than two-fifths of the expenditure of the average household. It is necessary, therefore, to take into account other groups of household expenditure in estimating price movements. Statistics regarding retail prices of clothing and drapery, footwear, furnishings, household ironmongery, and other miscellaneous items of family expenditure have therefore been collected as at November 15, and, combined with the index for fuel and light for that •month, together with the rent index for August (the latest available figure), in their proper proportions, the resultant “all groups” price index showing a level of 62.2 per cent, over that for July, 1914. It now takes 325. ssd., on the average, to 'purchase what 20s. would purchase in that month. Prices in the clothing, footwear, and miscellaneous groups have remained practically stationary since August the downward movement in the all "roups” index since that month, being almost entirely due to filling prices m the food groups.