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CED-82-23 1 (1981-12-16)

handle is hein.gao/gaobabctx0001 and id is 1 raw text is: 





                     UNITED STATES GENERAL ACCOUNTING OFFICE
                            WASHINGTON, D.C. 20548
                                      December 16, 1981
COMMUNITY AND ECONOMIC
DEVEWLPMENT DIVISION

    B- 205808j J5J

    The Honorable Ron de Lugo                            117182

    House of Representatives

    Dear Mr. de Lugo:

         Subject: High Food Prices in the Virgin Islands
                   (CED-82-23)

         Your October 13, 1981, letter expressed concern about the
    high cost of living in the Virgin Islands and, in particular,
    high food prices on the islands compared to other locations. You
    asked us to determine:

         1. Actual food price differences between the Virgin Islands
             and other locations such as Washington, D.C.; southwest
             Florida; and perhaps Puerto Rico, and whether any such
             differences are increasing or decreasing in recent years.

         2. Reasons for substantially higher food prices in the Virgin
             Islands than elsewhere if, in fact, that is what is found.

         This report responds to the first part of your request. As
    arranged with your office, work we do under part two of the re-
    quest will follow the issuance of this'report and further discus-
    sion concerning the scope and timing of such work. To determine
    actual food price differences, we obtained and analyzed food price
    data from three different sources: (1) Virgin Islands Bureau of
    Labor Statistics, (2) U.S. Department of Agriculture, and (3) U.S.
    Office of Personnel Management. Each source used a different ap-
    proach in assembling and analyzfing its data and these differences
    are reflected in the results. i The results generally indicate
    that:

         --Food prices are higher in the Virgin Islands than in
           Washington, D.C.; southwest Florida; and Puerto Rico. In
           Hawaii--representing another island economy--food prices
           are slightly higher than in the Virgin Islands.

         --The amounts of the differences depended on the data gathered
           and approaches used. For example, using different sets of
           data, Virgin Islands-food prices ranged from 26 percent to
           56 percent higher than food prices in Washington, D.C.


                                                            (097670)

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