Page:EB1922 - Volume 30.djvu/805

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COST OF LIVING
759

The numerical importance of the criticisms indicated may be seen by computing the number for Dec. 1920 with the following alterations: suppose that the modification of diet (margarine instead of butter, decrease of sugar and eggs and increase of other foods) reduces the food index to 260, that the increase in clothing cost is half that shown (as indicated by the Cost of Living Committee for 1918) and the index is 200 instead of 305, and that rent accounts for 20% of all expenditure, food for 50% and sundries for 10%, instead of 16, 60 and 4% respectively, then the index number would be 225 instead of 269. This is, perhaps, an extreme hypothesis, but it has been suggested (Bowley, Prices and Wages in the United Kingdom, 1914-1920, p. 75) that a standard equivalent on the whole to, but modified in detail from, that of 1914 might have been attained throughout by an increase of expenditure equal to four-fifths of that officially stated (100 + 4/5 of 169 = 235 in Dec. 1920).

Other Countries

(a) Cost of Food.—The experience of other countries has been similar to that of the United Kingdom both in the dates of increase and in the difficulties of satisfactory measurement. Table V contains in summary form the index numbers showing the movement of food prices in all the countries which are known to publish official figures based on 1914 prices. Except in Belgium, where the index numbers are the simple average of prices of selected commodities, the measurement is made on the same method as in the United Kingdom and based on the expenditure found from a collection of working-class budgets, though in some countries the number of such budgets is very small. In some cases, noted in the sequel, some changes in commodities are introduced, and in others alternative measurements based on actual expenditure at different dates are given. These numbers are summarized from time to time in the Labour Gazette (London), the Labor Review (Washington), in the International Labour Review (Geneva), and in the Monthly Bulletin of the Supreme Economic Council; they are of course also to be found in the official publications of each country.

Table V.

Index Numbers of Retail Prices of Food (based on the official statistics of the various countries).

(In every case the prices used are in the currency of the countries in question.)

   1914 
July
 1915 
July
 1916 
July
 1917 
July
 1918 
July
1919
Jan. July
1920
Jan. July
1921
Jan.








 United Kingdom* 100 132 161 204 210  230   217   235   262   263
 France (Paris) 100 122 132 183 206 261 290 373  410
 France (other towns) 100 123 142 184 244 248 293  380*  429
 Italy (Rome) 100 95 111 137 203 259 206 275 318  367
 Italy (Milan) 100 325 309 310 412 445  573
 Switzerland* 100 119 141 178 222 250 232  —
 Belgium  100* 396 459  493
 Netherlands (Amsterdam)  100* 114 117 146 176 189 204 197  210*  199
 Denmark 100 128 146 166 187 186 212 251 253  276
 Sweden 100 124 142 181 268 339 310 298 297  283
 Norway 100 160 214 279 279 289 295 319  334
 Spain* 100 107 114 136 162 168 180 193  —
 United States 100 98 109 143 165 181 186 197 215  169
 Canada 100 105 114 157 175 186 186 206 227  195
 British India (Calcutta) 100 108 110 116 121 155 153 170  —
 South Africa  100*  106*  114*  127*  129* 135 139 177 197  172
 Australia 100 131 130 126 132 140 147 160 194  181 (March) 
 New Zealand 100 112 119 127 139 145 144 158 171  174 (Feb.)

*Notes.United Kingdom.—The figures relate to the first day of the month following that named.

France, other towns.—The figures include fuel and light; the number 380 relates to June not July 1920.

Switzerland.—The numbers relate to June not July in each year.

Belgium.—The base is April 1914.

Netherlands.—In some accounts 217 is stated for July 1920 instead of 210; the basis in 1914 is the average for the year, not the month of July.

Spain.—The July figures are for the average April to Sept. and the Jan. figures the average Oct. to March each year.

South Africa.—The figures for 1914 to 1918 are the averages for the years, not July only.

Though the movements are by no means uniform, the rise is universal, and, except for a temporary break after the Armistice, continuous in nearly all countries till at least July 1920.

The break in the rise occurred at various dates after June 1920, as shown by figures in Table VI.

Table VI.

Index Numbers of Retail Prices of Food.

(The level of 1914 is taken as 100.)

 1920   United 
States
 Canada  United
 Kingdom* 
 Paris   Switzerland 
(13 towns)
 Rome   Amsterdam   Norway   Sweden   Australia  South
 Africa 












June 215 228 258 369 228 325 204 311 294 187 194
July 215 227 262 373 235 318 210 319 297 194 197
Aug. 203 221 267 373 239 322 212 333 308 194 196
Sept. 199 215 270 407 238 324 217 336 307 197 195
Oct. 194 214 291 420 247 341 218 339 306 192 197
Nov. 189 206 282 426 246 220 342 303 186 196
Dec. 175 200 278 424 235 375 208 342 294 184 188
1921
Jan. 169 195 263 410 367 199 334 283 172
Feb. 155 190 249 382 376 199 308 262 165
March 153 178 238 359 386 199 300 253 181 160
April 149 172 232 328 432 188 300 247 156
May 142 155 218 292 237

*Figures for beginning of following month.

The prices are of course strongly affected by the relative value of the currency in the countries, and some indication of the effect may be seen (Table VII) by converting them to a gold basis by means of the exchange on New York. July 1920 is taken as being near the date of maximum prices. Corresponding figures are also given for Jan. 1921.

Table VII.

July 1920  Jan. 1921 


Food
index
 number 
Exchange on New
 York as percentage 
of parity
 Deduced 
index
number
 Deduced 
index
number





 London 258 76.6  198* 210
 Paris 373 39.4 146 151
 Rome 318 27.6  88  71
 Amsterdam 210 85.5 180 168
 Stockholm 297 79*  235 230
 Switzerland 235 88*  207 193
 Australia 194 (approx.)  77 (approx.)   149 142
 United States  215 100    215 169

*Obtained by converting through London, thus: 258 × 76.6 ÷ 100 = 198.

Thus if an American had come to London with $198 in July 1920 he could have converted them into as many £ currency as would buy as much food as $100 would have purchased in July 1914. In Rome he would have needed only $88.