COST OF LIVING

Dominion, Volume 21, Issue 288, 5 September 1928, Page 10

COST OF LIVING

LITTLE CHANGE RECORDED A slight variation in the cost of living is revealed by the monthly abstract, of. statistics for July. The retail price index (Dominion weighted average) for the three food groups as at July 15 was 1573 (on the base average prices iu the four centres during the years 1909-13 is equal to 1000), an increase of 2 points as compared with that for the previous month, and of 47.0 over that for July, 1914. . Prices have remained almost stationary in the individual groups. The prices of potatoes and onions are showing an upward tendency, although that of sugar is still decreasing: the combined effect of these changes is reflected by a 7-point increase in the groceries index number. Butter aud eggs in the smaller centres show a definite reduction in price, with the result that a decrease of 11 points is shown iu the index number for the dairy-produce group. Meat prices are continuing to show a slight upward movement, and the index number therefore shows a 6-point increase.

Expenditure on food constitutes somewhat less than two-fifths of the expenditure of an average household. In order to present a more complete picture of movements in retail prices generally, statistics regarding the retail prices of ctething, drapery, and footwear, and miscellaneous items ot family expenditure, are collected at quarterly intervals, and when combined with the indexes for food. rent, fuel, and light, approximately 87 per cent, of the average household expenditure is represented. The July indexes for food, fuel and light, and the May indexes for the clothing and miscellaneous groups have been combined with the February indexes for the rent group. The resultant “all groups” index is 62.1 per cent, above that for July. 1914, so that it now takes £1 12s sd. on the average to purchase what could be purchased for £1 in that month.