THE SHRINKING SOVEREIGN

Greymouth Evening Star, 10 August 1920, Page 5

THE SHRINKING SOVEREIGN

DOWN TO 12/3.)

62.8 PER CENT. INCREASE. IN COST OF LIVING. The sovereign is still steadily shrinking and its average worth at the end of June, as compared with July, 1914, was 12/3gd, whilst the man who could get 20s worth of food between 1909-13 could only secure 11/52d for the sovereign now. The monthly abstract of statistics for July show that groceries have a tendency to remain much the same the difference in the price for the June quarter was three halfpence as against an increase of for the quarter ended March last. The following table clearly shows the manner in which the value of the sovereign is generally dwindling.

For the three food groups the reduction in the value of the sovereign for the five quarters to June 1920, was as follows, as compared with July, 1914 : June 1919, 14/1; Sept 1919, 13/81, ; Dec. 1919, 13/lf ; March 1920, 12/61; June, 1920, 12/31. RETAIL PRICES. The “cost of living” index number for the three food groups for the month of June (Dominion weighted average) is 1742, a decrease of 4 points as 'Compared with the May number, and an increase of 62.80 per cent, on the number for July, 1914.

The fall shown by the June index number is the result of influences operating in both the meat and the groceries groups, the fall in the latter case being mainly due to a drop in the price of potatoes. Prices in the dairyproduce group actually rose, but nol sufficiently to counteract the combined effects of the falls manifested by the two other food groups. During the June quarter of 1920 the amount required on the average to purchase in each of the four centres that amount of food which would have cost 20s on tlie average for the four chief centres during the years 1909-13 was - Auckland 34s 6J> ; Wellington, 355. ; Christchurch, 34s 4d. ; Dunedin 34s Pld. ; four centres, 34s SRI. The corresponding figures for the June quarter of 1919 were—Auckland, 30s 7d ; WelI’ngton, 31s IRI : Christchurch, 28s ilOi; Dunedin 30s 31d ; four centres. 30s 21d : and for the March quarter of 1920—Auckland 33s 7d. ; Wellington, 33s 61d. ; Christchurch, 34s Bd. ; Dunedin, 54s HI- ; four centres, 34s 2ld.

Groceries Dairy Meat produce. (a.) Average ‘‘wor th’’ in 1909-13 — 21s. s. d. s. d. s. d. June, 1919 13 Si12 10 12 11| Sept, 1919 12 8| 13 2-2 12 7 Bee. 1919 12 0 13 2| 11 Hi March, 1920 11 1 12 6 12 04 J une 1920 10 lit. 11 54 12 3|(b) Average “worth’ ’ in July, 1914— -20s s. d. s. d. s. d. June 1919 13 104 13 62 14 7t Sept. 1919 13 2 13 Ilf 14 2 Bee. 1919 12 42 13 Hi 13 54 March, 1920 11 5| 13 24 13 6| June 1920 10 ll£ 11 54 12 34