COST OF LIVING

New Zealand Herald, Volume LXXIII, Issue 22469, 13 July 1936, Page 12

COST OF LIVING

STATISTICS I'OR MAY LOWER THAN IN NOVEMBER COMPARISON WITH LAST YEAR Although tho cost of living in NewZealand is higher than it was this time last rear, the rise lias lint been as sharp as some statements would make it appear. Actually the Dominion weighted average of prices, as published in the Monthly Abstract of Statistics for June, shows the index figure for May, the last month for which figures are available, to have been very slightly lower than it was in November, the month of the general election. A fair basis for comparison of the cost of living is provided by the months of May, 1935, and May, 1936. Last year at that time there had been no movement toward a general restoration of wages cuts, and therefore there was 110 incentive for tho raising of prices. However, in May of this year there was a general expectation of restoration and therefore a reason for tho raising of prices and the cost of living. Tho Government Statistician's figures show that the average for May of last year was 535, covering all items, including groceries, dairy produce, meat, three food groups, rent, fuel and light, and clothing, drapery and footwear. The average for May of this year was 852. Comparison With 1934 This is an increaso of 17 points. But tho 'difference between tho average for May of last year and the May of 1934 was 23 points, the respective averages being 812 and 835. The averages for the whole year show that tho cost of living followed a downward trend from 1926 to 1933, the cheapest year since 1917, and then swung upward, after a slight oscillation, reaching the index of 837 last year, a figure which was lower than that of 1918, but higher than that for tho first year of tho World War. Although tho Dominion general average for May was slightly lower than it was for November, there was an increase in some of the individual group figures. Tho following figures nro for May, with those for November in parentheses:—Groceries, 803 (969); dairy produce, 82-1 (751); meat, 885 (879); three food groups, 861 (873), fuel and light, 875 (876); clothing, drapery and footwear, S2B (825); miscellaneous, 979 (975). These figures short' little difference except for groceries and dairy produce. Increase In Dairy Prices

The increase for dairy produce was/tlie only really substantial one, but offsetting this rise of 73 points there was—according to the May figures—a decrease of 106 points for groceries. No figures for rents arc available later than February of this year, when the index was 789, compared with 783 for November and 771 for May. The following are figures for May, 1936, with those for Slay, 1935, in parentheses:—Groceries, 863 (872); dairy produce, 824 (772); meat, BSS (835): three food groups, 861 (829); fuel And light, 875 (872); clothing, drapery and footwear. 828. (828); miscellaneous, 979 (980). There is a substantial increase shown by these figures for dairy produce, meat and three food groups.

All these figures, however, whether they show an increase or a decrease, cannot indicate to what extent tho cost of living has risen in the last six weeks. They serve to show only that the increase from May of last year to May of this year has not been abnormal in the light of figures for other years when an increase has been apparent. Nor do the figures showing an increase per cent over the index for July, 1914, show a sharp increase. For May of this year tho increase per cent over July, 1914, was 35.7, compared with 33.0 for May of last year, 29.3 for May, 1934, and 26.8 for May, 1933. But for November of last year the increase was 35.8 per cent—slightly more than the increase for May of this year.