COST OF LIVING

Evening Star, Issue 19443, 29 December 1926, Page 6

COST OF LIVING

DEARER SUGAR: CHEAPER BUTTER The retail price index (dominionweighted average) for three food groups ns at November 15 was 1.565 (on base: average prices in four chief centres during the years 1909-13 1,000), a decrease of 4 points since the previous month (states the ‘ Abstract of Statistics ’ for December). This index number shows an increase of 46.3 per cent, over that for July, 1914.

The minor increases in the price of sugar, together with the now general sale of this season’s potatoes,_ have accounted for the 4-point rise in the index number for tho groceries group. 'The slight but widespread reduction in tho price tof butter is the cause of the 16-point decrease in the index number of dairy produce. Meat prices are almost stationary, with a falling tendency;, the index number for this group has decreased 7 points. A comparison with indexes for November, 1925, shows the following differences;—Groceries, 2U points decrease; potatoes are considerably cheaper this year; dairy produce, a decrease of 97 points, due to the greatlyreduced price of butter; meat, a 227points decrease. Moat had readied its peak prices last November; this year it is showing a general and continued reduction. The index number for the combined food groups showed a reduction of 102 points during the twelve, months. Expel;; so on food constitutes somewlm. 'ban two-fifths of the expendito lie average household. It is nccr-s therefore, to take into account <■: . -roups of household expenditure ni estimating price movements. Statistics regarding retail prices of clothing and drapery, [cotwear, furnishings, household ironmongery, and other miscellaneous items of family expenditure _ have therefore been collected as at November 15, and, combined with the index for fuel and light for that month, together with the rent index for_ August (the latest available figure), in. their proper proportions, the resultant “ all groups ” price index showing a level of 62.2 per cent, over that for July, 1914. It now takes 32s Sid, on the average, to purchase what 20s would purchase in that month. Prices in tho clothing, footwear, and miscellaneous groups have remained practically stationary since August, tho downward movement in the “all groups ” index since that month being almost entirely due to falling prices in the food groups.