RETAIL PRICES

Dominion, Volume 22, Issue 12, 9 October 1928, Page 15

RETAIL PRICES

SLIGHT DROP IN AUGUST CHEAPER BUTTER; DEARER MEAT The retail price index (Dominion weighted average) for the three food groups as at August 15, was 1567 (on the base average prices in the four centres during the year 1909-13, equals 1000), a decrease of 6 points as compared with that for the previous month, and an increase of 46.5 over that for July, 1914, reports the Abstract of Statistics. “The price of sugar shows a decided general reduction, and this, together with slight reductions in minor items has caused the index number for the groceries group to fall 15 points. Bacon is still showing a reduction in price, and the usual seasonal decrease in the price of eggs is now taking place. Although butter show a slight upward tendency, the combined effect of these movements is reflected by a decrease of 25 points in the dairy produce index number. The index number for the meat group shows a 17 point increase, the prices for all classes of meat having increased generally. “Expenditure on food constitutes somewhat less than two-flfths 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 clothing, drapery, and footwear, and miscellaneous items of 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. “Index numbers have been compiled for rent, fuel, and light, clothing, and miscellaneous items of family expenditure as at August 15. When combined with the index for food the resultant all-groups index is 61.3 per cent, above the July, 1914 level. “The rent index has risen 17 points since the last collection of this data in February. In most towns a falling tendency is manifest, but in some of the larger centres the upward movement which has been continuous for some years has not yet stopped. Of the four chief centres, Auckland and Christchurch show decreases, while in Wellington and Dunedin increases have been recorded. Wellington still remains the highest and Dunedin the lowest of the four principal towns in respect of average rents paid. “Clothing prices have fallen, but the ‘effect of this fall has been largely coun-ter-balanced by a rise in the price of boots and shoes, the combined index being 8 points lower than that for May. “A considerable fall has taken place in prices in the miscellaneous groups, decreases in prices of crockery, carpets, and linoleums being the prime cause of the drop of 5 points in the index number. “The all-groups index (1613) shows a fall of 8 points as compared with that for May. and a rise of 2 points over February of this year.