THE COST OF LIVING

Taranaki Daily News, 22 December 1930, Page 10

THE COST OF LIVING

NEW BASIS OF COMPUTATION. ~ DATA FROM DOMESTIC BUDGETS. The retail price index numbers published by the Census and Statistics Office are on a pre-war base, the weights used in combining the index numbers for the various groups of expenditure in order to obtain “all. groups” indices being taken from the results of a house: hold budget inquiry by the Labour Department in 1910-11. For some time past, the question of revising these index numbers on a post-war base ha£ been under consideration, and it has been decided to adopt the year 1930 as a base in future compilations. . This particular year was selected at the instigation of the International Labour Office which urged all statistic-, i'ans compiling index numbers of retail prices in the various countries to adopt a common base so that comparisons may be more readily made. ,In ordei- to enable this work to be carried out, it was necessary to make a collection of house-hold-budgets so that the distribution of expenditure in the average family might be' ascertained; . The Abstract of Statistics recently issued gives some interesting particu-.. lars of the distribution of expenditure b v the average family. Food is shown to account for 29.52 per cent, of the total expenditure; housing,. 21.93 per cent.: clothing, drapery and footwear, 12.61 per cent.; fuel and lighting, 6.17 per cent.; mi s . ce l laneou ® items, 29.7,7 per cent. These figures are based On an examination of 318 household/.budgets. Although it was hoped that a larger number of. completed account books would be returned, the result' compares very favourably; with two I previous budget collections made in this country. Of the 29.52 per cent, of expenditure accounted for by food, the following were the, more important individual item?:—-Bread, 3.23;, flour, 0.87; meat, 5.62; bacon and haih- milk. 3.57;

butter, 3j5<7; sugar, Ll 4; tea, .coffee and cocoa, IAS; fresh J vegetables .and -fruit, 3.45; other foods, 5.84. CIo thing and ‘drapery..' accounted for 9,77 per cent, of the -total; expenditure; boots and ‘ shoes, 2.84;. and light, 617 i insurance, 3.78; ~ fares,' 3.46; superannuation,. 2-40;■ medical expenses, 2.38; sports' and . amusements, 5-2.20; papers, books and', postage,' 1.62; furnishings, 1.55;. tobacco, 1.30; household cleaning supplies, 1.09; other/Miscellaneous. items, 9.99, ’ • This grouping shows that the- proportion. of expenditure on food is higher in large households than that in those of smaller size, the proportion ...increasing from 24.9 per cent, in households of two members to 37.4-, percent, in. households of seven members >or 'more, — ~

As would be- expected'the proportion* ate expenditure on- housing :shows’a prd* gressive decline afe the' membership ol the' household mefe’asfe. The- proportion of expenditure' bn fuel 'and. light is practically ■ constant' for households of all'sizesf varying between 6.0' and 6.3 per cent, of total expenditure.- ;The percentage of expenditure'on' miscellaneous items shows a definite decrease? in the larger ';'• - ; The results' of . tliis'budget . Collection w that the'- proportion’ of expenditure ;pn food stea'dlfy' dcci'easebtetel. ■ ’ income of the family inereases,'- The proportion , spent on housing is greatest , iii the lowest income ''group;. aneL.dowest in the highest ’irfcome-grorfp intojwhick investigation was made. The’■"group* ; between £6-and dST 'a week.-Wffwever, show increases compared with the immediately, preceding, groups. Expenditure bn clothing; drkpery-and footwear is higher proportionately in the higher ■ income groups than in the lower income groups? ' ’ ' . s Fuel and ‘lighting are responsible between 5.5’and'7.6 per cent, of the total . expenditure,., the,, highest, figure Femg recorded in the case of in'cdnies of b?- . tween £4 and £4 10s a Week; white ..successive, decteases in. the., proportion. . spent bn this item are shown tp nave occurred as-the ineoine increases beyond £4 Ids ' week. ''. "