Page:EB1922 - Volume 30.djvu/806

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760
COST OF LIVING

It is evident that neither the currency reckoning nor a conversion to a gold basis show the real meaning of the increase of prices; we need also to know the change of income accruing to purchasers, on which some information is given below.

In Germany a calculation of a standard food budget based on official maximum prices in 200 localities was made monthly for the years 1914-9 (Deutscher Reichsanzeiger, Dec. 19 1919). Since the foods could not generally be obtained and there was much evasion of regulations the numbers have hardly even academic interest, and the more important information is that given below under cost of living. The numbers in question yield the following figures (Table VIII):—

Table VIII.

Index Number for Standard German Budget.

 1914   1915   1916   1917   1918   1919 







 Jan. 102 118 161 214 225 253
 July  100 152 213 220 231 328

In Finland (Abo Underrättelser, Feb. 25 1920) it appears that the cost of 1 litre of milk, 5 litres of potatoes and 1 kilo. each of butter, flour, bread, meat, bacon, sugar and coffee rose from 11.68 to 106.23 Finnish marks between 1914 and the beginning of 1920, an increase in the ratio 100:909.

For Japan a correspondent of the London Economist (Aug. 9 1919) gave details showing that the expenditure on food of an ordinary family had doubled in Tokyo between the first quarters of 1916 and 1919.

(b) Other Commodities.—The preceding tables relate (with certain exceptions) to food only. In many countries index numbers of the cost of living including other expenditure are published with more or less regularity. The relative importance given to classes of expenditure in pre-war budgets is as shown in Table IX, each expenditure being expressed as a percentage of that allotted to food:—

Table IX.

United
 Kingdom 
 United 
States
 Norway   Sweden   Denmark   Holland   Rome   Milan   Canada  New
 Zealand 
 Uruguay 












 Food 100  100  100  100  100  100  100  100  100  100  100 
 Rent 27 35 33 34 35 35 21 18 66 33 77
 Fuel & Light  13 14  9 11 11 14 12  7 19 11  —[1]
 Clothing 20 43 26 25 28 28 16 19 26 56
 Other items  7  69[2]  40[3]  58[4] 36  43[5] 11 16  39[6] 50

It is clear that the methods of establishing the original budgets varied greatly from country to country. Since rent has increased little for those who have not moved and clothing has increased greatly in expense a good deal depends on the relative importance allotted to these items.

The various countries have collected information about the cost of living at different dates in rather sporadic ways. Only the United Kingdom has computed a monthly index from the beginning of the war on a uniform system. No doubt the difficulties of measurement and of obtaining data described above have been experienced in all countries and it would require very detailed criticism to ascertain whether the basis of collection was sufficiently wide and whether the prices were typical. The numbers in Table X must only be regarded as approximate both in respect of amount and of date, but they indicate the periods of increase and show in which countries it has been most rapid. In most countries there has been a shortage of houses and a legal restriction on rent; the figures are based in general on rents which have been hindered from rising. Whether the index number of food exhibited in the previous table or that of the cost of living has increased most depends mainly on a balance between rent and the cost of clothing, and the latter must have been uncertain in all countries.

In general the index numbers show a nearly regular increase from 1914 to the end of 1918, stationariness in 1919 and a rapid rise to a maximum at the end of 1920.

Many of the figures have been given from time to time in the Labour Gazette (London) and the Labor Review (Washington) and in similar publications in other countries. For Table X they have been extracted from the originals in the country to which they re- late as far as possible.

Table X.

Index Numbers of Working-Class Cost of Living at a Fixed Standard

in Various Countries (Food, Rent, Fuel, Clothing, etc.).

United
 Kingdom 
 United 
States
 Canada   Norway   Sweden   Amsterdam   Denmark   Rome   Milan 










 1914  July
Dec.
 1915 July
Dec.
100  100[7] 100 100 100  100[8] 100 100 100
103
125  97 116
135 104










 1916
 First quarter 135
 Second quarter  140
 Third quarter 150 102 136
 Fourth quarter 160 118 139










 1917
 First quarter 165 185 123
 Second quarter 175 152
 Third quarter 180 130 166 132 155
 Fourth quarter 185 144 219










 1918
 First quarter 190 235 192 153 166
 Second quarter 195 203
 Third quarter 210 146 260 219 170 182 311
 Fourth quarter 220 174 264 242 165 229 346










 1919
 First quarter 220 263 267 171 190 236 352
 Second quarter 210 177 262 265 181 219 309
 Third quarter 215 156 258 257 179 211 206 290
 Fourth quarter 225 199 301 257 191 238 342










 1920
 First quarter 230 177 288 259 199 242 284 378
 Second quarter 240 217 295 265 202 312 426
 Third quarter 255 190 331 270 207 262 318 453
 Fourth quarter 270 201 181 341 281 365 513










 1921
 First quarter 250 176 311 271 265 379 568
 Second quarter 249

In some other countries there have been occasional calculations on a similar basis. In Uruguay (Boletin de la Oficina Nacional del Trabajo, Montevideo, May-Aug. 1919) the increase in necessary expenditure from 1913 to 1919 is given as 44% for an unmarried and 36 or 37% for a married labourer. In Argentina (Revista de Economia Argentina, May 1920) the increases in food, rent and other expenses are stated as 32, 16 and 165% respectively from 1914 to 1918 and as 45, 50 and 150% from 1914 to 1919. For Hungary (Labour Gazette, April 1921) a statement is quoted that whole family expenditure was in Jan. 1921 47 times as great in currency as before the war; rent had only increased 67%. For Germany an estimate is given (International Financial Conference, Brussels, 1920, Paper vii., statistics of retail prices) that the index number for food, clothing, rent, fuel, etc., in 28 towns was 373 in April 1919 compared with 100 in Jan. 1914, and if 373 is taken for Frankfort-on-Main in April 1919 subsequent numbers for that town are: Sept. 1919 433, Nov. 1919 466, Jan. 1920 630 and March 1920 740.

  1. fuel and light included in other items.
  2. including 13 for furniture
  3. including 3 for taxes
  4. including 14 for taxes
  5. including 2 for taxes
  6. including 3 for taxes
  7. Average for 1913.
  8. The original figures for Amsterdam are based on a calculation for 1910-1; it is estimated from other data that prices rose 7% between 1910 and 1914 and the numbers are adjusted on this assumption, but they can only be regarded as approximate when 1914 is compared with other years; for the sequence beginning 1917 the relative numbers are correct.