Food Prices (Hansard, 25 November 1957)

§ 37. Mr. Lewis
asked the Minister of Agriculture, Fisheries and Food whether he is aware of the continued fall in the world prices of almost all types of food commodities, and that the cost of food imports is falling rapidly; and what action he proposes to take, by price control or otherwise, to ensure that these falling prices are passed on to the consumer by lower retail prices of all types of food, in view of the fact that the latest monthly cost-of-living index figure shows a rise of one point.

Mr. Amory
The prices of many imported foods have fallen during this year. Although the landed cost of imported food is only £1,300 million, out of a total expenditure in the shops of £4,400 million on all foods, a number of food items in the Retail Prices Index have moved down during the last few months. I am satisfied that the forces of competition will ensure that reductions in import prices are translated into appropriate retail price changes.

§ Mr. Lewis
May I take it from the figures the Minister has given that there has been a reduction of about 25 per cent.? If that is the case, can he tell me of any commodity which has dropped by 25 per cent. in the retail shops? While it is true, as the Minister says, that some may have dropped, does he not agree that 800 there is no reflection whatsoever of the figures he has given in retail costs in the shops at the moment?

Mr. Amory
No; the hon. Gentleman will be aware that the imported price does not make up the whole of the retail price.

§ Mr. Lewis
That does not allow for 25 per cent.

Mr. Amory
Costs representing processing, transport, retailing and delivery have to be allowed for, too.

§ Mr. Willey
Will the right hon. Gentleman say in plain terms what the effect would have been on the cost-of-living index if this decrease had reflected itself in that index?

Mr. Amory
No. The reduction, incidentally, has not yet been a big one—about 5 per cent. only in the last few months, the index of imported food prices in the first half of the year having shown an actual increase. The reduction is only beginning now to be effective. The point I was making was that the imported cost is only part of the final cost of the retail food as sold in this country. Therefore, I would not expect a reduction or an increase as a percentage to be fully reflected in the retail price.