27
on a seasonally adjusted basis. The increase in the
prices of foodstuffs accounted for 77% of the total increase
in the index, that is to say, of the increase of 20
percentage points in this period nearly 16 points were on
account of prices of foodstuffs. Whilst, therefore, fuel
prices and, for that matter, the prices of most other
consumer items, have been rising rapidly in recent months,
there can be no doubt that it is still foodstuffs on which
attention should mainly be focussed.
75.
Now, most of our foodstuffs are imported, 50%
And, although prices of
by value coming from China. foodstuffs from China were low and stable for many years prior
to 1971-72, they have since been rising more or less in line with world prices. The proportion of domestic consumption, in quantity terms, represented by imports in 1973
was as follows: cattle, 99%; rice, 98%; pond fish, 92%; pigs, 88%; and eggs also 88%. Even for fresh vegetables and poultry the proportions were quite high at 60% and 58%
respectively. In the case of marine fish, of course, most
of what we consume is caught by our own fleet and the proportion supplied by imports is as low as 10%.
76.
But what has happened to the import prices of our
Figures for the first quarter of this year
foodstuffs?
are not yet available, but the fourth quarter figures for 1973 have been compiled and these, when combined with the figures for the first nine months of last year shown in the Economic Background publication, produce some startling results for 1973 as a whole. I have already mentioned that, in the twelve months to February of this year, seasonally adjusted food prices at the retail level increased by 28%. For the calendar year 1973 the increase was about 24%. But, at the import level, the increase in 1973 was 32%. In the case of rice, it was nearly 120%. In the case of wheat and flour, it was over 50%. In the case of vegetables it was over 30%. In the case of pond fish (and fish
preparations), and meat and meat preparations, it was about
These increases are almost unbelievable; but truth
25%.
is often stranger than fiction.
77.
When it is realised that import prices for foodstuffs in 1972 increased by only 5%, compared with 32% for 1973,
/the...