from our Economics Correspondent. Government spokesmen continue to repeat that prices have been frozen as well as wages. The following figures taken from the Financial Times Grocery Index show the large increase in prices of groceries in the last month and with wages still under strict Government control this means a real reduction in the standard of living of those very people who brought the present Labour Government to power, Dearer fruit and vegetables, especially new potatoes and tomatoes,were the main reason for a jump of 1.55 points in the index of grocery prices this month, which stands at 109,75. The pattern is the same as for last year, when May's index was 1,43 points above April 1966, also because of fruit and vegetables. Old potatoes are still available but are being rejected by most shoppers because they represent such poor value at this time of year. Much the same applies to tomatoes and good quality English varieties are averaging 3s a pound. Apples, too, are from 3a to 6d higher this month for good qualities. Onions are unusually high at around ls 3d. Meat and fish are also costing more at present - beef is up by about 4d @ pound on average in most areas, Despite these wide-ranging examples of increases in the price of food the Financial Times shopping team considered that grocery retailers were keeping prices down well compared with retailers of other family necessities. Among their comments were that grocers must be making "very little profit" and that "competition seems to be reducing the profit margin to an alltime low, but how long can they keep it up?" This makes it quite obvious that the present increases are more than seasonal fluctuations and that we can expect a further jump in the prices of basic necessities in the very near future. Financial Times Grocery Index - Summary of Categories. Totals of Eleven Shopping Areas.
May April
€:'svd. £: sia, 1. Dairy produce, fats eggs, etc. 43 66 43 4 8 2. Sugar, tea, coffee and soft drinks. 188114 1878 3. Bread, flour, cereals, biscuits and cakes. 27 1.3 2705 4, Preserves and dry groceries, 5104 5 9 8 5. Sauces and pickles. 44% 439 6. Canned foods. 189104 1810 34 7. Frozen foods. 488 4:9' 53 8. Fish, meat, bacon, ham, etc. (fresh) 60 9 94 59 10 oO: 9. Fruit and vegetables, 30 4 3 27 16 5 10. Non-foods, 21 21:10 F
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mM INDEX 1964: Nov. 1003 Dec. 102.35. 1965: Jan. 101.41; Feb.102,233 Mar,102.58; April 103.16; May 103.70s;June 105.28.
July 105.88; Aug.105.31; Sept.103.663; Oct.103.13; Nov. 103.953Dec. 105.93. 1966: Jan.105.80; Feb.104.66 Mar.105.39;April 106.78;May 108,21; June 109.90;
July 109.34; Aug.108.47; Sept.107.743 Oct.106.81; Nov.107.47; Dec. 108,16, 1967: Jan.108.853 Feb.108.20; Mar.107.66; April 108.20; May 109.75.