COST OF LIVING

Press, Volume LXXIV, Issue 22465, 28 July 1938, Page 9

COST OF LIVING

TO THU EDITOR OT THE PRESS, Sir, —In your issue of Monday, Mr D. Nicholson points out that fluctuations in average statistics of the price index figures arrived at by the Goyernment Statistician are not true to fact as indicating the fluctuations in cost of living to consumers. An analysis of price fluctuations in a number of commodities will disclose that the price average is unrelated and unreliable as an index to the cost of lmn|,. A simple illustration will make this Cl Suppose, for example, the price of bread is raised lei a half loaf, an increase of 20 per cent., and bicycle lamps are raised in price from 5s to 5s 6d, a 10 per cent, increase, tbe average increase in price of those commodities is 15 per cent. Each . I buy a half loaf of bread at the increased price, I find that my bread bill for the year has risen 30s 01 per cent. On the cost of living figures, as supplied by the Government Statistician, and proudly quoted by members of Cabinet as indicating only a lo per cent, rise, I then rectify my extravagance by purchasing a bicycle lamp— Yours, etc., P ECONOMIC DEMOCRACY. July 26, 1938.