COST OF LIVING

Otago Daily Times, Issue 21530, 30 December 1931, Page 10

COST OF LIVING

RECENT FLUCTUATIONS A DOWNWARD TREND. The index number for the three food groups as at November 16, 1931, on the base, average prices during' the years 1926-30=1000, was 832 —a decrease of 16.8 per cent, as compared with the average of prices ruling during the base period, reports the Government Statistician. A decrease of 2 points is recorded since the previous month, and of TOO points, or 11.6 per cent., as compared with the corresponding month of last year. The index number for the groceries group has fallen by 3 points smee the previous month, the November index (905) representing a fall of 9.5 per cent, as compared with the average of prices ruling during the base period (1920-30). Grocery prices were, on the average, 3.0 per cent, lower in November, 1931, than in November, 1930, despite an increase of 73 points in the index since August, 1931. Dairy produce prices have shown a slight upward tendency in November, the increase of 6 points recorded in the index number being mainly caused by seasonal fluctuations in egg prices. The level of prices in this group is, however, exceptionally low at present, being 10.1 per cent, lower—on the average—than was the case 12 months ago, and 22.1 per cent, lower than the average ruling prices two years ago. MEAT PRICES FALL. Meat prices have fallen slightly since October, the November index (828) being 8 points lower than that for October. Expenditure on food constitutes approximately three-tenths of the expenditure of an average household. In order to present a more complete picture of the movement in retail prices generally, statistics regarding retail prices of clothing, drapery, and footwear and of miscellaneous items, are collected at quarterly intervals, while returns of house rents are obtained twice a year. When these indexes are combined with the monthly food and fuel and light indexes, approximately 81 per cent, of the average household expenditure is represented. The all-groups index for November, 1931, on the base average prices ruling during 1926-30 = 1000, is 893, an increase of 2 points as compared with the August, 1031, figure, and of 42.2 per cent, over July, 1914, prices. The all-groups index has fallen by 7.3 per cent, since November, 1930, and by 11.0 per cent, since November. 1929. INDEXES COMPARED. When the individual group indexes are compared witli those lor August, 1931, in which month the immediately preceding collection of prices of clothing, drapery, and footwear, and miscellaneous items was taken, the following price movements are noted: — Prices of food have increased since August, the increase in sugar prices being the main cause of this upward movement. The normal seasonal increase in potato prices consequent on the introduction of the new season’s crop is also in part responsible for the increase of 12 points recorded in the combined food-groups index. Clothing, drapery, and footwear prices have fallen by 6 points since August. The level of prices in this 'group is now 23.8 per cent, above July, 1914. The index number for the miscellaneous group, has fallen by 12 points since August. Among the individual items included in this group an increase in tobacco prices has been offset by a reduction in railway faros. Taking all groups of family expenditure combined, it now takes £1 8s 5d to purchase what could have been purchased for £1 in July, 1914.