COST OF LIVING.

Timaru Herald, Volume CXXXIV, Issue 18844, 6 April 1931, Page 6

COST OF LIVING.

AUCKLAND TRADERS’ CLAIMS. Some investigations were made recently by an Auckland paper into the claims that there had lately been an outstanding reduction in the cost of j living. Inquiry was pursued in regard to the food and clothing groups. Evidence was gathered as to a decline not only over a period of ten years, but during the past 12 months. "There has not been a year since the peak in which prices have not declined 1 on the average,” said a provision mer- 1 chant. “Since 1920 the graph shows a ; continuous stepping downward. In j some years the steps have been short, j in others long, but the trend has been unbroken in its direction, and now bedrock has been reached in provisions and groceries until there is a drop in wages. The high rate of wages being paid in most distributing trades is the barrier to further reduction. The Staple Lines. “As to prices, let us take the staple lines. I presume that those who question statistics will not deny that there has been a substantial drop in butter and cheese, seeing that the fall in: these prices is largely responsible for ; the national depression. Take sugar. 1 used in very home, not only for table use, but in cooking, baking and jam j making. The price of sugar to-day is 1 only half what it was at the peak and a shade lower than before the war. As j a consequence of the decline in sugar, = the jam we buy and sell is cheaper. j “Rice, sago and tapioca are as cheap | to-day as before the war. Bacon, with ! butter and cheese, are at pre-war j prices. Oatmeal, pearl barley, split j peas, packed green peas and haricot ! beans are down. Soap is cheaper. ! Tinned meat and tinned fruit are | down. “Tea, cocoa and coffee have seen a considerable reduction in the last 12 | months, except in one or two lines of j well-advertised tea and cocoa. But the | public demand is for the cheaper sorts, which does not mean inferior grades. Tea prices are lower than for years. As a matter of fact, they are below the cost of production in Ceylon, India [ and Java. The tea planters are in as bad a position as the dairy farmers of j New Zealand, and the public is getting the benefit in both cases. “Dried fruits are about the same price as last year, notwithstanding that a drought in America removed a great deal of the completion faced by the Mediterranean, and Australia. If America had been in the market in normal degree the prices would be much lower. “The price of eggs is at present fairly ( high, as is always the case at the 1 Easter season, but for the 12 months j the average price has been from four- ; pence to flvepence less than the pre- I vious year.” From another quarter it j was learned that at least one suburban grocer Is giving 16 pullet eggs for the price of a dozen this week. “Potatoes and onions,” proceeded the merchant, “have. been considerably cheaper during the year. Only in a few lines of imported foodstuffs has there been any increase and that is solely due to the fact that there is an exchange addition equal to about 11 h I per cent. The buying price in England is slightly less.” Another factor has been the increase in competition, w'hich has been entirely to the advantage of the bargain hunter. It is hardly necessary to refer to meat. Whether one considers the prices still too high, in view of the cost of stock, or not, the fact remains that meat prices are substantially less. There has also been a reduction in the price of meals in many restaurants. Excellent three-course meals and fish meals may be obtained in the city for one shilling and the remark is frequently heard that “it reminds one of pre-war times.” Market for Clothing. In regard to clothing it is impossible to enumerate articles as in the case of provisions, but from a general survey of goods it is obvious that the market to-day is emphatically a buyers’ market. in men’s wear the prices of such staple lines as suits, underwear, shirts, pyjamas and shoes, at equivalent values, are lower than they were a year ago.

“In regard to clothing,” said the head of a leading house, “you must bear in mind two facts. One is that this season’s goods are the first to bear the last increase in tariff and they also have the burden of the high exchange, I against about 2 per cent formerly. These charges have nullified any reduction that might have been gained in the buying market. But there has been no rise in the general run of retail prices. The tendency has been to lower levels, brought about by competition and the recognition by retailers that the public is demanding cut prices. Retailers are compelled to cut prices by the general influences of the times.