RETAIL PRICES

Evening Post, Volume CXIII, Issue 30, 5 February 1927, Page 10

RETAIL PRICES

HOUSEHOLD EXPENSES

63.1 PER GENT. ABOVE 1914

The retail-price index (Dominion weighted average) for the threo food groups as at 15th December, 1926, was 1591 (on base: average prices in. four chief centres during the years 1909-13 equals 1000), an increase of 26 points since the previous month. This index number, states the Government Statistician (Mr. Malcolm. Fraser) shows an increase of 48.7 per cent, over that for July, 1914. • / :, ' A marked increase in the price of potatoes, and the further riso in sugar prices caused the'index number for the groceries group to move upward:: to the extent of 65 points. Butter prices were slightly higher, and- the higher charges usually predominant at Christmas for eggs caused a 25-point increase in the index number for the dairy-produce group. The index number for the meat group showed a reduction of 22 points, reflecting the declining tendency of prices for all classes of meat.

A comparison, with December, 1925, index numbers shows the following differences:—Groceries an increas' of 22 points; sugar is from Is to Is 6d dearer per 701b bag in 1926; dairy-produce, a decrease of 60 points, this agai being due ,to the lower price prevailing for butter. jThe meat group shows a decrease.of 163 points; although the crest, of the peak prices had been passed in December, 1925, prices were still high, and the tendency all through 1926 was in the direction of a continuous and heavy decrease. The index number for the combined food .groups was for December, 1926, 60 points less than that for the corresponding month last year. 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 15th November, and, combined with the index for food,'and fuel and light for December, together with the rent index for August, 1926 (the latest available figure), in their proper proportions, the resultant "all groups'', price index shows a level of 63.1 per cent, over that for July, 1914.. It now take 3 32s 7id, on, the average, to purchase what 20s would purchase, in that month..