Part 3

------------------------------------+-----------------+--------------- | Mid-March, 1922.| Mid-June, 1922 |--------+--------+--------+------ | | M.L. | | M.L. | P.O. | and | P.O. | and | | L.G. | | L.G. ------------------------------------+--------+--------+--------+------ | d. | d. | d. | d. Butter (Irish Factory) per lb. | 21.9 | 21.1 | 22.0 | 20.6 Rice (Rangoon) per lb. | 4.1 | 4.0 | 3.9 | 3.8 Rice (Java) per lb. | 6.1 | 5.9 | 5.9 | 5.6 Jam (Strawberry) per lb. | 15.7 | 15.9 | 15.2 | 15.2 Fresh Pork (Shoulders) per lb. | 16.8 | 17.2 | 17.4 | 17.4 Fresh Herrings per lb. | 26.1 | 25.3 | 25.6 | 23.7 Cod Steak per lb. | 14.4 | 14.7 | 13.8 | 13.8 Tea (Quality most used by | | | | working classes) per lb. | 36.1 | 35.0 | 33.4 | 32.1 Cabbage per head | 3.6 | 3.7 | 3.4 | 3.1 ------------------------------------+--------+--------+--------+------

The above prices, which were used as far as possible in conjunction with other figures to arrive at the correct increases between July, 1914, and March and June, 1922, in respect of commodities, less specifically described in the returns for 1914 (e.g., Butter, Rice, Jam), will also be of value in the future as an additional basis from which to calculate the change in the cost of living.

NOTES ON RETAIL PRICES.

(a) Collection of Figures for 1914.

There are obvious difficulties in the collection of figures for 1914 after so long a lapse of time, and the accuracy of these figures may possibly be questioned.

Despite the eight years' interval, however, we believe these prices to be reasonably accurate. The compilers of the returns were asked to get figures in every case from the actual books kept by the shopkeepers; and the food prices collected by us are in substantial agreement with those collected by the Board of Trade in 1914. The latter are, as a matter of fact, slightly higher than those collected by us, so that if they were to be used in preference to our figures the resultant percentage increase would be slightly lower than on the figures which we have accepted.

(b) Comparison Restricted to Strictly Comparable Articles.

A point to be noted is that in comparing prices at different dates it is essential that articles of different quality should not be compared; milk, for instance, is a simple commodity and is always comparable with milk, but beef is a variable commodity inasmuch as sirloin beef is not strictly comparable with shin beef; consequently special figures showing the relative consumption and average prices of the different parts of beef, mutton and bacon were obtained on Form B3 (see Appendix), and in these cases the prices as returned for each description of meat are separately weighted by the average quantities purchased in order to arrive at the ultimate average prices for "beef," "mutton," etc.

As regards all other articles, it will be seen from the instructions on the forms that pains were taken to explain that prices must only be returned for strictly comparable articles.

(c) Accuracy of Rent Figures.

A point likely to give rise to criticism is the low percentage increase shown for rent. This figure is, however, the result of comparing the actual returns sent us by the Town Clerks and Rate Collectors, who gave the actual name of the street and the actual number of each house, and on the closest investigation we have no reason to doubt the accuracy of their figures. The average weekly rents (including rates) appearing from those returns are:--

Average Weekly Rent (including Rates). July, 1914 4s. 0d. March, 1922 5s. 2d. June, 1922 5s. 2d.

(d) Comparison of Figures received from Post Office and other Sources.

It will have been noted from the Table of Retail Prices given above that on the whole there is comparatively little difference between the sets of figures compiled by the Post Office officials and those compiled by the Ministry of Labour and Local Government Board officials, though the Post Office figures tend to give a somewhat higher average increase of prices. This is brought out by the following table of the ratios of retail prices for the main groups of commodities for the three dates:--

---------------+-----------------+------------------+----------------- | Mid-July, 1914. | Mid-March, 1922. | Mid-June, 1922. ---------------+--------+--------+---------+--------+--------+-------- | A | B | A | B | A | B Food | 52.4 | 54.6 | 104.8 | 102.8 | 100 | 100 Clothing | 52.7 | 52.9 | 103.9 | 101.7 | 100 | 100 Rent (C) | 78.9 | 78.9 | 100.4 | 100.4 | 100 | 100 Fuel and Light | 46.6 | 48.1 | 104.8 | 104.4 | 100 | 100 Sundries | 50.5 | 51.9 | 103.2 | 103.1 | 100 | 100 ---------------+--------+--------+---------+--------+--------+--------

The figures A result from the returns from the Post Office.

The figures B result from the returns from other Departments.

The figures C were obtained from only one Department--the Local Government Board.

(In case the meaning of this table is not at once clear, it may be explained that the first line, for instance, means that for 100s. expended on food by the wage-earning households in June, 1922, exactly the same quantities and exactly the same foods could, according to the Post Office officials' returns, be purchased in March, 1922, for 104.8s., and in July, 1914, for 52.4s. and according to the other returns for 102.8s. and 54.6s. respectively; and so on with the other items).

The near agreement of these figures is a strong proof of their essential accuracy. We ultimately decided to take the average between the two sets of figures as representing the nearest approach to the truth at which we could arrive.

(B) The Collection of Household Budgets.

(1) Representative Budgets.

The second stage of our enquiry was to obtain representative household budgets, from which to compile the "weights" by which the individual price changes might be combined into a single final figure.

For this purpose a special Form was drafted (Form B6, a copy of which appears in the Appendix) and some 5,000 of these forms were despatched to National School teachers in every school in the country, accompanied by detailed instructions (of which there is a copy in the Appendix) of the method in which they were to be completed.

Notwithstanding the difficulties of the time when these budgets were called for, and the fact that a number of forms were held up and perhaps lost in the post, we were able to use 308 completed budgets of wage-earning households, received from 112 towns. This number was quite sufficient for our purpose. These budgets were excellently filled in, and, apart from the fact that such a number is in itself a fair guarantee of the statistical results obtained, we are satisfied for reasons given below of the substantial accuracy of the budgets.

(2) Wide Scope of Budgets.

The budgets received were from a very varied class of households, and as will be seen from the following list, embraced the principal industrial occupations. Labourers, Fishermen, Messengers, Servants, Pilots, Barmen, Carpenters, Boatmen, Building Contractors, Motor Boat Drivers, Plasterers, Ship Inspector, Stone Masons, Marine Engineer, Bricklayer, Mill-hands, Yachtman, Caretakers, Tailors, Post Office Workers, Housekeepers, Tailoresses, Gardeners, Herds, Dress-makers, Shop Assistants, Farm Stewards, Shoemakers, Charwomen, Dairyman, Cottage Industries, Laundresses, Egg Packer, Milliners, Washerwomen, Fowl Plucker, Shirtmaker, Hairdresser, Wool Sorter, Spinners, Smiths, Woodcutters, Embroidery Workers, Fitters, Sawyers, Hosiers, Boiler-makers, Wood-turners, Stitchers, Engineers, Body-makers, Knitters, Plumbers, Golf Caddies, Lace-makers, Machinists, Pointers, Road Engine Drivers, Crane-driver, Paper Maker, Motor Mechanics, Collier, Sextons, Car Drivers, Brass-finisher, Butchers, Carters, Bakers, Dealer, Chauffeur, Millers, Electrician, Tram Driver, Confectioner, Watchmaker, Railway Workers, Painters and Saddlers, etc.

(3) Compilation of Budgets.