FAMILY EXPENSES

Waipa Post, Volume 42, Issue 3305, 4 June 1931, Page 5

FAMILY EXPENSES

RETAIL PRICES IN 1929 AND 1931.

MINISTER’S OUTLINE,

An elaboration of the figures concerning the level of the cost of living contained in the bulletin of the Department of Industries and Commerce was provided by the Minister (Hon. P. A. de la Perrelle) in a statement to the Dominion last Saturday. “ There is no doubt,” said Mr de la Perrelle, “ that the business people, in line with the curtailment of salaries and wages, are, as far as they can, cutting down the cost of household commodities. As is generally known, for the purpose of measuring at a glance the general movement in prices, it is necessary to compile index numbers by a somewhat elaborate and lengthy process, and New Zealand’s index number of retail prices, or, as it is more generally called, the cost-of-living index, has for many years been an important statistical item to the Government, to parliamentarians, to financial and business circles, to employers’ and workers’ organisations, and to the general public.

PRICES OF FOODSTUFFS. In a lengthy and elaborate tablo the Minister quotes the following percentage decreases in retail prices for articles of every-day use between 1929 and 1931 in the four centres: Milk^,. ■ per quart, 16.0; bread, per 2 lb loaf, • s 3.6; factory butter, per lb, 21.1; i \ cheese, per lb, 28.9; potatoes, per 14 lbs, 15.4; flour, per 25 lbs, 3.1; tea, per lb, 8.6; granulated sugar, per lb, 23.0; beef, per lb, up to 23.3; mutton, per lb, up to 40; shirts, 19.6; locallymade suits, 5.5; locally-made blankets, 18.7; women’s shoes, per pair, 20.8; '■ men’s shoes, per pair, 12.7; footwear repairs, 5.3. “ Between the first quarter of 1929 and the corresponding period of 1931 the retail price index number (incMj sive of rent) fell from'l6l2 to '1604, or by 6 2-3 per cent, the comparative?: index being 1000,’” Mr de la Perrelle . added. “ While some important food- „ j stuffs, notably bread and float, show/fp less than this fall, such items astineat,',"’• ’.j potatoes, butter, milk, and sugar have fallen to a much greater extent than the average of all commodities.* The decreases shown for stock clothing prices do not really represent the true position, as the prevailing economic conditions have given a great -; im- j petus to special sales at prices much below the standards ruling for or dim- j ary purchases. Leading clothing houses estimate that, taking speciMfe|| sales and discounts into jlj clothing prices realised averages quite. J 5 per cent below the present officiall y averages. | RENTS DECLINE SLOWLY. & “ The fall in the ‘ all groups ’ number would have been much but for the influence of rents, which,' however, are now showing the same tendency as the great bulk of other commodity prices, the rent index number having fallen by 56 points the first quarter of 1929, three-fourths of this decrease occurring during the last six months of the period. , ~ “It is of interest to take a few of the more important commodities, ;,y and to gauge the savings to the house- \

wife represented by the recorded de-' crease in price. The latest statistics' 0 of total annual consumption per head . ; ;j. of the principal articles of foodstuffs are as follow: Butter, 344 lbs; fresh beef, 156 lbs; mutton and lamb, 87 lbs; bacon and ham, 144 lbs; sugar, 86 lbs. From these figures the approximate weekly consumption oi these items in the average family is shown as: Butter, 3 lbs; beef, 13 lbs; mutton and lamb, 74 lbs; bacon and ham, 14 lbs; sugar, 74 lbs. _ “ The fall of 4d per lb m butter prices represent a saving of Is per week in the average family expenditure. Beef prices are shown to have decreased by from Id to lid per Taking the average decrease in prices of beef as 14d per lb, a further saving of Is 4d per week is noted. The very considerable fall in mutton prices as compared with the prices ruling two years ago (approximately 3d per. lb all round) will represent a deduction of Is lOd from the weekly expenditure. The fall in bacon and sugar prices represent a decrease of 6d per week in the household accounts of the thrifty housewife. FAMILY BUDGET BENEFITS. “ Assuming the moderate consumption of 14 pints of milk a day by the average household, the reduction of Id per quart in this item represents a saving of 5d per week; while even the slight fall of 4d per lb per 21b loaf recorded in the price of bread reduces the family account for this item by 2d per week. This is an inconsiderable saving in itself; but, when added to the decreases in the items already shown, makes up a quite appreciable fall in the weekly ° U decrease in weekly household expenditure on these essential food - items alone totals over ss, .withou taking into account smaller items in this class. • , “Clothing, drapery, and footwear items account for approximately 1> per cent of the expenditure of the average household. From the small selection of items included in this re- ' V view of prices it is apparent that considerable savings in expenditure on this important item in the household accounting can be made. “As stated previously, the fall in prices in this group of commodities is even greater than is assessed by the oflicial figures, for the abnormal selling conditions prevalent at the .present time in the clothing trade enable the careful buyer to effect sav- ' ings of up to 30 per cent in this type of expenditure. Special lines of goods , are being sold at sacrifice prices in order to attract custom; and the bar-gain-seeker can, by taking advantage of the shopkeeper’s dilemma, secure the household requirements at a muc%|||| reduced figure.” -..•jjggßß