HIGHER PRICES

New Zealand Herald, Volume LXXIII, Issue 22512, 1 September 1936, Page 13

HIGHER PRICES

HOUSEHOLD BUDGETS EFFECT OF INCREASES ADDITIONS TO WAGES Already it would seem that the amount of the increase in pay received as a result of the return to the 1931 standard of wages is actually offset in some households by the advances in commodity and other prices that have been taking place lately. A\hile this is true of possibly not a very large percentage of households, the percentage is likely to increase very soon because many increases in prices have been withheld by manufacturers until the effect of the 40-hour or 44-hour week is apparent on their businesses. Some price advances in foodstuffs, for example, are considered as a first instalment only by the manufacturers concerned. When they put up prices in order to allow for higher labour costs since July 1 they reserved the right to make further advances when the reduced working hours came into operation. Cost of Groceries Wages and living standards vary so much that no reliable general estimation of the position relating to household accounts can be made. However, a number of wage sheets of journeymen inspected showed weekly pay increases as a result of returning to the 1931 rates of such amounts as ss, 6s, 10s 3d, 7s 6d, 10s »d, lis and 12s. One large employer estimated the average increase at 9s among his workers. These figures are interesting in making comparisons, although their value is naturally limited.

Taking the budget of a household comprising husband, wife and two children of school age, a grocer estimated that recent increases in groceries would not represent less than Is 5d or Is 6d, and if the family were inclined toward luxury lines the figure would be much more. In his experience, such a family would use about 61b. of flour (increase, lid), 61b. sugar (Id), cornflour (id), cheese (2d), jellies (Id), broad (6d), biscuits (Id), soaps (2d), jams (Id), making a total of Is 4d. There were other items showing increases such as sauces, tinned meats, polish, pickles and a brand of cleanser with other increases pending. Not all of these were due to the recent rise in labour costs, overseas conditions being responsible. Meat and Coal Cakes are now dearer, in many instances by 2d a dozen. Restaurant meals generally hare gone up Id, but some months ago other increases occurred. A butcher pointed out that beef had recently advanced by 2d per lb. Before that, rises in mutton also amounted to 2d. There were very wide differences in the consumption of meat by families, but he considered that with many average families recent increases in meat would represent an addition to their weekly accounts of Is 9d to 2s. Coal recently advanced retail by 6d a sack and firewood by 3d a sack. Household consumption in these varies greatly, because there are other forms of heating, but one supplier said that many of his customers who used coal and wood for both cooking and heating used a sack of both coal and wood a week. Due to rises in leather, many classes of footwear recently advanced 71 to 10 per cent. Within a few . days now manufacturers are expected to be passing on higher labour costs. Clothing is also due to make advances. One line of New Zealand woollen goods recently advanced wholesale by 10 per cent. The householder is, however, finding his purse affected by higher prices in a variety of ways. Laundry prices are dearer. Hardware shows rises of 2i to 5 per cent on higher selling and distributing costs, while many lines are much dearer because of overseas advances or to increases by local manufacturers. Other Rises Pending There are increased rates for parcel deliveries. Workers' weekly concession tickets will be increased from -3s 3d to 3s 6d from September 7 on the trams. The Auckland Transport Board faces a big increase in expenditure due to the restoration of the 1931 rates of wages and introduction of the 40-hour week, but its action over workers' concession tickets is the only one so far taken to meet its problem. If 4s were taken as representing increases in the family budget for groceries, meat and firing and heating, it would probably not be excessive so far as many households are concerned. Other increases might easily account for 2s, if not more. Impending rises in many commodities, already announced by manufacturers as inevitable, are likely further to reduce the gain caused by the return to the 1931 rates of pay. Unfortunately, so far as the public is concerned, conditions on overseas markets' are contributing fairly substantially to higher pri'ces for certain classes of goods, although many classes of imported groceries are not so affected.