FOOD PRICES

Evening Post, Volume CXIII, Issue 53, 4 March 1927, Page 10

FOOD PRICES

CHEAPER HATES INDICATED

The Government Statistician shows that tho retail index for the three food groups as at loth January was 1580 (oji base: average prices .in four Hiief centres during tho years ll)0!)-i;i, equals 1000), a decrease of 11 points since the previous month. This index number

shown mi increase of 47.7 per cent, over that, of July, 1014. Tlio dec reuse of 24 points in tlio index number for the groceries group is stilted to 1)0 duo mainly to reductions in the price of potatoes, and, to ;i lesser extent, of flour and bread. Though sugar is still showing a rising tendency, its iniluenco was more thnn counteracted by these general and marked reductions. Milk find egg;; ai'o lluetuuting in price with v tendency to doc.roaac, but tlio general rise in tlio price of Inittor has ciuiscd the index number for th' diiry produce 'grgup to move upwards 14 points. The decrease of 11 points i the index number for the meat group has been caused by slight reductions in the prices of beef and mutton. As compared with January, 10£"_ all index numbers allow decreases: Groceries, a 20-point dcc ase, mainly owing to the earlier reductions this rear in tho prko of potatoes; dairy produce, a 3!)-point decrensc; butter, though now rising in price, is yet considerably lower than it was in January, l'.)2C. Tho meat group shows a decrease, of 146 points; meat price's were just beginning to fall in the early part of last year, and are still so doing. The index v- über for the combined food groups was this month 72 points less than that for the corresponding month last year. Expenditure on food constitutes somewhat. Itss than two-fifths of the expenditure of the average household. It is necessary, therefore, to take 'nto 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 liavo therefore been collected as at loth November, and, combined with the index for food and fuel and light for January, together with tho rent index for August (the latest available figure), in their proper proportions the "resultant 'call groups" price index allowing a level of 63.1 per cent, over that for duly, 1014. It now takes 32s 34d, on the average, to purchase what 20s would purchase in that,month.