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better informed as to the true facts of the supply situation they might well refrain from rushing in.
110.
Secondly,
unreasonable rounding up of prices
by wholesalers and/or retailers following upon increases in landed costs or excise duties: this does happen and has happened very recently. Following upon the budget proposals to increase the duty on spirituous liquors, some dealers have rounded up the additional duty when applying it to their prices. For example, one company which imports, wholesales and retails certain particular proprietary brands wrote to its customers a letter starting "The Government Excise Tax on all liquor has been very substantially increased as from 28th February 1974" and ending "We genuinely regret this increase in selling price which is brought about by circumstances quite beyond our control". Between these two statements
For all the increases
For
was a list of increases per bottle. to the prices for wines and spirits, the extra duty has been rounded up by up to 60 cents to the nearest dollar. beer, the increase was five to seven times the additional duty. If the reason for this was a coincidental increase in costs. the letter should have said so, but it didn't.
111.
Thirdly, to the extent that individual consumers limit their daily shopping to a few retail outlets, they could tend to be unaware of the level of prices elsewhere (and some retailers doubtless take advantage of this); but easy access to information would improve their purchasing efficiency.
112.
Fourthly, in a period in which prices are rising rapidly and continuously, consumers tend to get into the habit of assuming that they will regularly have to pay more and, therefore, are vulnerable in the sense that merchants, sensing this expectation, respond to this expectation whether or not costs so warrant, thereby confirming the expectation and helping to ensure its continuance.
113.
Last November I introduced a Consumer Advisory Service covering, in addition to rice, several items of fresh
These were foodstuffs (namely, fish, vegetables and pork).
the items for which retail price increases had made the
/largest....