PRICE OF FOOD

Evening Post, Volume CX, Issue 156, 30 December 1925, Page 6

PRICE OF FOOD

STILL AT HIGH LEVEL

AN AUTHORITATIVE REVIEW.

Food prices are now higher than they have been since October, 1921, and higher than they had been at any time prior to January, 1920.

This is the introduction of the Government Statistician (Mr. M. Fraser) to a review upon the present retail prices of foodstuffs. The retail priooindex (Dominion weighted averago) for the three food groups (groceries, dairy produce, and meat) as at 16th November was 1667 (on the base: average prices for the four chief centres during the years 1909-13 equal 1000), involving an increase of 11 points as compared with the corresponding index for the preceding month and showing a price-level 55.8 per cent, above that for July, 1914 (viz., 1070). BUTTER FALLS, EGOS RISE. "Prices of groceries have risen 26 points since last month; this is a usual happening at this time of the year, and is due to seasonal changes in tho prices of potatoes' and onions. A fall in the price of butter, partly offset by slight rises in eggs and in bacon in certain centres, accounts for a decrease of 15 points in the dairy produce group. Meat prices, which had risen 158 points during the three months ended 15th October, 1925, have slackened in their rate of ior crease, some centres (notably Taihape and Hamilton) actually showing a fall in November; so that a net increase of S points only in recorded for tho meat group, which is now within 16 points of the pre-war pen'c ! eve l—recorded in December, 1920. Even at the present high level _ of meat prices, prices are not so high for this group relatively to the baso period (tho average of the year ,190!) to 1918) as are prices for the groceries group. .'"ln November, 1925, the index number for the throo food groups Bhowed a level 88 points higher than the index number for tho corresponding month last year. Tho index number for groceries is 23 points lower this year than last, largely owing to the much lower-prices now prevailing for sugar; on tho other hand, the meat group in November of this ye{ir shows a level as uiany as 254 points above that of the corresponding month last year, while the higher prices noW prevailing for butter and hani, coupled with the fact that tlio price of eggs has fallen,less sharply with tho approach of summer than was the case last year, account for an increase of 47 points in the dairy produce group. WHAT WE BPEND ON FOOD. "Expenditure on food constitutt-3 somewhat less than two-fifths of tho total expenditure of tho average Now Zealand household. Unlike the data Used for computing the price-indexes for food and for fuel and light, price quotations for the remaining items cf domestic expenditure have hitherto been collected less frequently than nt monthly intervals. If, nevertheless, the last ascertained price-indexes oa base:"July, 1914, equals 1000 for these heads of expenditure—rent (that fur August, 1925—viz. 1709), clothing, drapery, and footwear (that for November) 1925-^viz., 1599, as compared with 1646 in July), and miscellaneous items (that for November, 1925—viz., 1899, aa compared with 1743 in July) —were to be combined in their proper respective proportions with the food, price-index for November, 1925 (viz., 1558), and with fuel and light pricaindex for November, 1925 (viz., 174d ( as compared with 1749 for October, 1925)—the result WOUld be to show aa increase for the "all groupß" retail price-level of 63.3 per cent, over th.at for July, 1914. CROCKERY PRICES CRASH. "The fall of 47 points Since July in the clothing group is due to a considerable drop in clothing and drapery, reinforced by a minor fall in footwear prices. Amongst the miscellaneous sub-groups all, save papers and periodicals (which remains stationary), exhibit a fall, the largest drop being recorded in connection with crockery, closely followed by fares (there havo been minor reductions in train fares and a considerable reduction in Wellington tramway concession fares on journeys of from throe sections upwards), and the smallest falls being recorded in connection with the furnishings and ironmongery sub-groups." Summarising tho Government Statistician's conclusions, the position is that i&t the end of September last), one pound-sterling'has to be paid for groceries .that in July. 1914, could bo had for 12s 2sd, butter, cheese, and eggs for 13s sd, meat, for 14s 4}d, rept 11s Bid, fuel and lighting 11s sjd, boots, clothing, and drapeiy 12s 2d. In short, the cost of living since immediately before the war has risen 7s 10a in the fll, for what costs £1 to-day could be had then for 12s 2jd. COMPARED WITH ELSEWHERE. However, New Zealand is better off in many respects than some other countries, on the Government Statistician's shewing. "Comparison of prices with other parts of the Empire is, on tlio Whole, not unfavourable from the consumer's standpoint, to the New Zealand cities considered, except as regards coal; while in reBpeet Of flour also New Zealand is less favourably situated from a'consumer's standpoint than any of the other towns considered, except Capetown. New Zealand is Cheaper for raisins than Australia, despito the fact that the Commonwealth produces these articles on a considerable scale. Bugiir, too, is very cheap in New Zealand.'' The reasons for this lie in the high protective tariff of Australia. ". . . Meat in New" Zealand, like butter and cheese, is still exceptionally choap in the Dominion relatively to its price elsewhere (with the possible exception of Australia). This is largely due to New Zealand's greater distance from the world's markets, the local prices of our staple exports being determined by London prices, diminished by the cost of shipping and handling, deterioration on the voyage, etc. Owing to the greater bp!k in proportion to tho value of meat than of dairy fjvoduuc, these transportation costs are much greater relative* I,V to value in the case of meat; herteS the greater differences^ between New Zealand and London prices in ttit^ casfe of this commodity than in that of butter and. cheese.'^