WHOLESALE PRICES

Taranaki Daily News, 26 February 1931, Page 8

WHOLESALE PRICES

PRE-WAR LEVEL IN BRITAIN.

SLIGHT'-FALL - IN RETAIL RATES.

Reviewing the course of . wholesale prices-in Britain, the.Statist says: ‘The year 1930 finished true to form, our index number - for .the end of December showing a. further drop of. 1.9 per cent, for the -month. The index, number for the end of the year is 86;9- (average prices in 1867-77 equals 100) and shows that the fall in prices during 1930 has amounted to 20.1 per cent. 'Since the return of the pound to’the gold standard in 1925 sterling wholesale prices have fallen by 36.8 per cent. ' . ' . “The movement ’in wholesale prices which was witnessed last year may be considered as ' the final - lap in the return of these prices .to the neighbourhood of pre-war prices. The latest index number is only 2.2 per eent. above the average figure for 1913. The reversion of wholesale prices to the neighbourhood of their pre-war level may be explained as being the result of the universal return to the gold standard and of-the reversal of the factors which' between 1914 and the middle of 1920 caused a. steady depreciation in the value of gold. The deflationary character’ of the fall in wholesale prices over the past year is revealed by the - widespread nature of the movement. . Each sub-section of sterling wholesale prices has been 1 affected by it. Vegetable foods' have fallen by 23 per cent., animal foods by 12 per cent., groceries by 17.5 per cent., minerals by 14.5 per cent., textiles by 40.2 per cent, and sundry materials by 15.5 per cent. The fall in prices cannot have been due to over-production ‘‘all along the line.” A tabulated summary of the monthly index numbers is given. The,, following figures show the movement under the various headings as from January to December, those in the last coluriin representing a provisional calculation of the averages for the year: Jan. Dec. Year. Vegetable food 85.7 68.8 76.7 Animal food ........ 151.7 131.1 139.1

>: Referring to other prices, the Statist says': “It should be noted that as against the fall of 20.1 per cent, in wholesale prices over the year 1930 revealed by the index number, the tost of living index number up to the beginning of December (thq January 1 figures have not yet been published) showed a fall over the year of only, 6.5 per cent., while the index number, of nominal wages compiled by Professor Bowley ha,s receded over the year by, less than 2 per cent'. Unless wholesale prices recover’ materially—an unlikely contingency under, present circumstances —it is evident that the attack on the probleni of adjustment has only begun.” ....

Sugar, tea and coffee 00.4 50.8 53.5 Foodstuffs 104.7 87.9 94.8 Minerals 123.7 105.0 111.6 Textiles 98.3 63.9 83.8 Sundries 105.2 00.3 ’97.7 Materials 108.1 86.1 97.1 All commodities ..... 106.6 86.9 96.2