H—4B

(a) Household Durable Goods The importance of including this group of items in a consumers' price index is referred to in the following resolution of the International Conference of Labour Statisticians : 13. Every effort should be made to include a suitable representation of semi-durable and durable consumer goods in the list of goods priced. The following classes of durable consumer goods are represented in the proposed index (see Appendix A) : household drapery, furniture, floor coverings, radios, household hardware, crockery and glassware, household electrical and other appliances. In the case of durable goods —e.g., furniture, radios, floor coverings, electric appliances—the weight allotted to each item represents an estimate of the annual replacement value of the goods. Prices will be collected from representative dealers in the ten larger towns at quarterly intervals (February, May, August, and November). (b) Other Commodities This sub-group includes a miscellaneous collection of domestic and personal requirements, which do not fit logically into any other group, as follows : household cleaning supplies, personal requisites (cosmetics, toilet-soap, razor-blades, toothpaste, &c.), educational and cultural supplies (school books and stationery, newspapers and magazines, library subscriptions, books), patent medicines and baby-foods, tobacco and cigarettes. In each instance estimates of total expenditure at retail prices (based on imports plus local production minus exports) were made in order to form a basis of weighting these items. Prices will be collected at quarterly intervals in the fourchief centres, excepting for cleaning supplies, prices of which will be obtained from selected grocers in ten towns. (c) Services This sub-group will be represented in the index by the following groups : (i) Transport. (ii) Postage and telegrams. (iii) Entertainment. (iv) Union dues. (v) Health services not covered by social security. (vi) Personal services. Prices will be collected at quarterly intervals in the four chief centres, excepting in cases —e.g., rail fares —where a New Zealand quotation is applicable. (i) Transport This sub-group includes railway, tramway, bus and taxi fares, cycle tires and tubes. The weight allotted to rail fares represents total passenger journeys by rail with a deduction 011 account of business travel; the weight for tram and bus transport represents total passenger fares without deduction. On the pricing side, fares for journeys of specified lengths will be collected. Tram and bus fares will be weighted by weights representing the number of journeys over each section travelled during the year. In view of the varying length of sections, the average fare (cash and concession) per 100 chains on each length of journey will be used to price tramway fares. An estimate of the annual expenditure on taxis was made, using statistics of the number of taxis in operation and estimates of the annual takings. Statistics of taxi fares per mile in the four chief centres will be used in pricing this item. Prices of cycle tires and tubes have been included in this group as indicating in some measure changes in the cost of cycle repairs, the weight being derived from employment and import statistics.

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