§ Mr. Osborneasked the Minister of Agriculture, Fisheries and Food if he is aware that imported food prices fell by 7 per cent. during the past year but retail prices increased by 6 per cent.; how much of the total food consumed was imported; how much of the increased prices was due to greater distribution costs; and if he will make a statement.
§ Mr. John HareIn recent months the food import and retail price indices have diverged appreciably compared with a year ago, since the savings on imports have been obscured, and more than offset by higher prices for some home-produced foods, mainly potatoes, fruit and eggs. But substantial reductions, consistent with the fall in the import price index, have occurred in the retail prices of such mainly imported commodities as butter, cheese, sugar and tea.
The cost of food imports accounts for about a quarter of consumers' total expenditure on food. It is impossible to say what effect greater distribution costs have had, but average wage rates have risen by nearly 5 per cent. since the spring of 1957 and there have also been increases in fuel, light and transport.
It is to be expected that prices of potatoes, fruit and vegetables will decline over the next few months for seasonal and other reasons, and there should be a fall in the retail price index for food as compared with recent months.