COST OF LIVING

New Zealand Herald, Volume LXXII, Issue 22198, 27 August 1935, Page 12

COST OF LIVING

PRICES IN BRITAIN , PREDICTION BY SOCIALIST [from our owx correspoxdext] By Air Mail LONDON. An sr. 3 A correspondent of the Daily Herald predicts a substantial rise in the cost of living in Groat Britain next winter. He says that the cost of meat and dairy produce is causing much of tho concern. This should be good news for tho Dominions, but the correspondent writes from the viewpoint of the general election, atid doubtless sees a way of blaming the National Government and transferring the support of the poorer people to the Socialist Party. "I have good reason for believing," says the writer, "that even the Imperial Economic Committee has warned Mr. Baldwin and Dominions' Governments that tho views of the high food price prophets are well grounded. So serious is the view taken by the Cabinet that Mr. Walter Elliot, Minister of Agriculture, may take an opportunity of declaring that tho Government is contemplating legislation to protect the consumer against tho forcing up of retail costs. "Ail this has had an important bearing on the question of holding the general election in November. Last month the cost of living index figure went up three points. This is little, the experts say, compared with what may bo expected in the winter. Meat and dairy products are causing much of the concern, but tho cost of other foodstuffs is expected to rise sharply. Reports show that the dairying season both in Australia and New Zealand is closing with much lower output levels than in recent years. This will have an important effect on this country's retail prices. "In Canada the season's gradings of both butter and cheese are considerably down, as compared with other years. The drought which Argentina is experiencing is affecting both wheat sowings and dairy exports. "Already, cheese and butter prices hero are rising, and there are 616,800 fewer boxes of imported butter in cold storage than there wore at this timo last year. Egg production throughout Europe is being lowered by weather conditions. This was reflected during tho week-end by a rise of 2s per long hundred (120) in National Mark standards. "Add to all this the fact that next winter will see the cumulative effect of the Government's policy of restricting meat, bacon, dairy and egg impoits, 'and the dear food prophets are seen to bo justified. That is ono of the main reasons why the election posters are being got ready. 'As it looks like being a bad winter for the housowife and her family, let us snatch what votes wo may, as soon as we can.' That is tho argument which has made the November election a practical certainty."