H.-18

XVI

If retail prices move with wholesale prices, and if, as Mr. G-. H. Knibbs states, "it is not unlikely that expenditure on food alonelfurnishes a true indication of the standard of material well-being,"* this table would provide us with a good means of measuring the extent of the change in the cost of living during the last twenty years. Taking the single years 1891 and 1911, there is a rise of 12*7 per cent. If in order to reduce the influence of an abnormal year we take the averages of the first and last five-year period, the rise is only 10-9 per cent. Comparing the year 1911 with the triennial period 1894-96, there is a rise of 20 per cent. The rise has been more marked after 1901 than before, and during the nineties there were four years in which prices fell. The most abrupt changes occurred in the rises of 1902, 1905, 1907, 1908, and 1911 ; the falls in 1904 and 1909 were also severe. Since 1901 the rise has been 15 per cent. ; if we take the. average of the first and last fiveyear periods, 1901-5 and 1907-11, it has been nearly 5 per cent. This rise in these food-prices would have been slightly greater but for the effect of the remission of certain import duties. This table may be compared with that given in evidence by Dr. Mcllraith (page 274).

Table 3. —Index Numbers indicating Variations in Prices of Certain Commodities. (Base, 1890-99 = 100.)

From this table it would appear that the group " animal products " shows the highest rate of increase ; but articles other than foodstuffs are included in this group. Table 30 in Chapter IV shows that whilst the general level of prices in New Zealand rose 7 per cent., when we compare the average prices for the two five-year periods 1894-98 and 1906-10, the following important foodstuffs rose higher than this average : Wheat (10 per cent.), barley (17), beef (20), mutton (20), lamb (25), bacon (36), butter (41), and cheese (61) : showing a general rise for this group of 29 per cent, above the average rise. The price of tea, coffee, flour, and oats rose less than the average ; and only the price of sugar, rice, and currants fell. Mr. F. P. Wilson (page 408) adapted Dr. Mcllraith's figures in convenient form for estimating the percentage of change over the last twenty years. This portion of his evidence is embodied in the following table : —

Table 4.—lndex Numbers of Prices in New Zealand, with Base 1891 = 100.

The five agricultural products, wheat, flour, barley, oats, and oatmeal, show a rise of 10 per cent., comparing the first and last year of the period ; the other foods, which include sugar, currants, sultanas, rice, sago, salt, salmon, and pepper, a fall of 30 per cent., due largely to fiscal changes. Wool is included in pastoral products.

* " The Cost of Living in Australia," p. 1177.

Year. Cereals. Animal Products. Other Foodstuffs. .895 900 908 .909 .910 911 .. .912, to end June 85 84 133 104 110 119 115 94 113 134 132 135 131 145 93 101 103 102 103 107 111 ' r

Year. Agricultural ! Pastoral „ Products. : Products. Bevera S es - Other Foods. Average of the All CommoFour Groups. dities. 891 .896 901 .908 ,910 100 104 82 105 110 100 91 108 129 132 100 98 98 98 107 100 74 79 75 70 100 92 92 102 105 100 89 90 93 95