SHARP FALL IN RENTS

New Zealand Herald, Volume LXIX, Issue 21305, 5 October 1932, Page 7

SHARP FALL IN RENTS

wages and food prices BRIEF REVIEW BY ECONOMIST "The effect of the rent reductions authorised by the National Expenditure Adjustment Act, as from April, 1932, is evident in the latest figures published by the Government Statistician," said Dr. E. P. Neale yesterday. "These show a fall of 10 per cent in the average house rent 3 being paid between February and August of this year, or equal to the reduction that took place in tho whole of the two years preceding February, 1932. "Rents are now per cent below the 1927 figure and 53 per cent above the Ju'y, 1914, figure. Rent has shown a greater drop sinco tho base period 1926-30 than any of the other groups of household expenditure except food, which has fallen 24 per cent. The retail price index of all groups of domestic expenditure is 18 per cent below the average level of 1926-30 and per cent above the July, 1914, level. "Adult money wages in the second quarter of the year were 43 per cent above the 1914 level, so that the wageearner is actually about 10 per cent better off in real wages than he was.in 1914. Of course, ho has the additional 5 per cent unemployment levy to pay and is also subject to a greater risk of unemployment."