THE COST OF LIVING.

Lyttelton Times, Volume CXVIII, Issue 18414, 21 May 1920, Page 5

THE COST OF LIVING.

TO THE EDITOR. Sir, —I have read with interest the various loading articles on the above subject which have appeared from time to time in your journal. Your latest, that of Saturday, is particularly illuminating, but apt, I guess, to mislead in some respects those sections of the public not so well versed in statistical matters as yourself. It seems strange that a person of your knowledge and experience who, if it were not for the lucrative position you now hold, would doubtless be filling the important post of Government Statistician, is not aware that stocks of tea, which some months ago might bo purchased at a comparatively low figure, are being sold, to-day at a lower rqtail price than the wnolesale price of tho stocks now coming on the market. You are puzzled to ascertain in what manner the Government Statistician has arrived at his estimate, that the cost of living has advanced since July, 1914, 63 per cent. Taking the Statistician's data as quoted by you and assuming 100 to represent tho prices ruling in July, 1914, we have March, 1920, prices as follows:

which gives ,/m increase in the cost of living (all groups) of 61.05 per cent. It will be noted the Statistician’s figures are quoted to the nearest unit. Doubtless the discrepancy is accounted for by the fact that ins estimate of 63 per cent was in all probability arrived at by using the actual increase correct to several places of decimals. Your figure of 66.83 per cent on the other hand is exactly that which would be arrived at by taking the Government Statistician’s increase of 45 per cent to apply to rent, fuel and light. But, if the Statistician’s figures as quoted by you are scrutinised closely j it will be seen that the 45 per cent increase relates to those items in conjunction with food, a fact which apparently you have overlooked. Another- point. You say that “ for tho first time wo have a clear statement of the Department's estimate of i'ne proportion of household expenditure devoted to various necessities.” 1 am surprised to hear this, as I have recently been reading Mr Fraser’s report on the cost of living 1891-1914, published five years ago. On page 99 appears tho identical information you quote as being now published for the first time.—l am, etc., E. M. JOHNSTONE. Wellington, May 1.8, 1920.

Proportion Product of of total two preceding Price Exp’d’turo. columns. Food, reint, fuel 145 .59 85.55 Clothing - - 250 .14 35.00 Miscellaneous - 153 .27 40.60 Total _ 1,00 161.05