Cotton followed an exceptional course. With the cutting off
of Germany from the market the price fell considerably in the
first months of the war and was below the pre-war level till nearly
the end of 1915. Presumably in consequence of the restriction of
shipping, a rapid rise began in the autumn of 1916, and at the date
of the Armistice cotton was at three times its pre-war price;
then there was a perceptible fall for some months, but this was
followed by a great increase, the reason of which has not been
explained, which brought American cotton early in 1920 to more
than four times its cost in July 1914; the reaction from this
inflation gave the first indication in 1920 that the general index
number was about to move downwards. Both yarn and piece
goods rose more rapidly than raw cotton, especially in 1919-20.
The price of wool also fell after the outbreak of war, but the
great demand for the Allied armies soon turned the scale and
English wool especially became rapidly dearer in 1915. From
June 1916 the Government took steps to assume ownership of all
the wool it required and to control the rest; the distribution to
manufacturers and prices was arranged by an intricate system
involving the Government, wool-brokers and manufacturers
(Zimmern: Economic Journal, March 1918). The price was very
high in 1917-8 and rose rapidly in 1919 when the civilian demand
for replenishing their wardrobes and households was acute, and
the prices of yarn and manufactured goods outpaced even raw
materials. There was no definite fall till 1920. As regards flax,
the cutting off of the Russian supply and the Government
demand for linen in airships caused linen to be practically
unobtainable by civilians, and the shortage naturally continued
long after the war. Jute and silk were less affected.
The variations in the movements shown under the heading
“Miscellaneous” can in general be explained by known conditions
of supply and demand. The supply of petroleum proved to
be sufficient for war needs. The Statist index number is vitiated
by the exclusion of rubber. Owing to the development of
plantations before the war the supply was even excessive; the
price was rarely more than 20% higher than in July 1914 and
after the Armistice was lower.
(III.) Retail Prices of Food in the United Kingdom.—Accurate
and useful statements of retail prices are in general only obtainable
with respect to food, in part because most attention has been
directed to recurrent and necessary domestic expenditure, in
part because it is less easy to define the unit of purchase in the
case of clothes and manufactured goods. The cost of other
necessary items of expenditure is considered in the article
Cost of Living, and this section deals with food alone.
The following tables show the average prices paid by the
working classes in the United Kingdom, the result of the monthly
collection of information by the Ministry of Labour (formerly by
the Board of Trade) published in each issue of the LabourGazette, and described in detail in the issue of March 1920. The
general movement in retail prices was similar to that of wholesale,
that is, a nearly regular increase (23% cumulatively per annum)
took place for three years after the outbreak of war, then for more
than a year the rise was checked by control and rationing; there
was a temporary fall in the spring of 1919, followed by a rise
which became rapid in the summer and autumn of 1920 and a
fall after Nov. 1920.
Table VI.—Average Retail Prices in the United Kingdom of the Principal Foods as recorded* at the beginning of each month in the
Labour Gazette.
1914
1915
1916
1917
1918
1919
1920
1921
July
Dec.
July
Dec.
July
Dec.
July
Dec.
July
Dec.
July
Dec.
July
Dec.
June
Bread
4
lb.
Flour
lb.
Beef
British
lb.
Imported
lb.
Mutton
British
lb.
Imported
lb.
Bacon
lb.
Milk
qt.
Cheese
Imported
lb.
Butter
lb.
Margarine
lb.
Sugar
lb.
Potatoes
7
lb.
Tea
lb.
s.
d.
s.
d.
5
¾
6
½
10
½
1
0
8
8
¾
6
7
¼
8
¼
8
¾
5
½
6
½
11
¼
1
0
3
½
3
½
8
¾
9
½
1
2
¼
1
3
½
7
¼
7
¼
2
3
½
4
¾
4
1
6
½
1
8
¾
s.
d.
s.
d.
8
8
1
3
1
3
¼
11
¾
11
¾
9
9
¼
10
¾
11
8
8
¼
1
1
¼
1
2
½
3
¾
4
½
11
½
11
¼
1
4
½
1
7
7
¼
7
½
3
½
4
4
¾
4
½
1
11
2
3
½
s.
d.
s.
d.
8
¾
10
1
4
½
1
7
½
1
1
¾
1
1
¾
11
½
11
1
1
½
1
1
¾
11
¼
11
1
3
½
1
5
½
4
½
5
¼
1
1
¼
1
2
½
1
7
2
0
8
¼
8
¾
5
¼
5
½
7
½
10
¼
2
3
¾
2
3
¾
s.
d.
s.
d.
11
½
9
1
10
1
4
1
4
½
1
3
½
1
1
¾
1
1
½
1
5
½
1
3
1
2
1
1
½
1
8
¼
2
2
¼
5
½
6
¾
1
7
½
1
4
¾
2
0
2
4
½
11
¾
11
½
5
¾
6
11
¾
6
¾
2
8
3
1
½
s.
d.
s.
d.
9
9
1
4
1
4
1
3
½
1
5
½
1
3
½
1
5
½
1
3
1
4
¾
1
3
1
5
¼
2
3
2
3
5
½
8
½
1
5
1
8
2
5
½
2
6
1
0
1
0
7
7
7
½
7
¼
2
8
2
8
s.
d.
s.
d.
9
9
½
1
4
1
4
1
3
½
1
6
1
1
½
1
2
¾
1
3
¼
1
5
¼
1
1
1
0
2
3
2
4
½
6
½
10
¾
1
6
1
6
2
6
2
6
¼
11
¾
1
1
7
8
8
¾
10
½
2
6
¼
2
9
¾
s.
d.
s.
d.
1
0
½
1
4
1
11
2
6
¼
1
6
1
9
1
0
¾
1
0
¾
1
5
¼
1
11
10
½
11
¼
2
6
2
9
¾
7
¾
10
¼
1
8
½
1
9
2
11
¼
3
3
¾
1
2
1
1
¾
1
2
10
1
3
¼
11
½
2
10
¾
2
8
¾
s.
d.
1
1
½
2
0
¾
1
8
¾
1
0
1
10
11
2
2
¼
7
¾
1
7
½
2
2
9
1
7
¾
8
¾
2
6
½
*The prices from Dec. 1914 to Dec. 1918 are calculated from the percentage changes recorded.
Notes.—The prices of meat are the means between two entries in each case and not the average prices of the carcases. They should
only be used for comparative purposes, and not taken to be the average price of all meat bought.
In general the records are the average for the commodities as bought in shops and stores used by the working class.
Table VII.—Average of Retail Food Price-Changes in the
United Kingdom as computed in the Labour Gazette.
(The average on the 1st or 2nd of each month is expressed as a
percentage of the average in July 1914.)
1914
1915
1916
1917
1918
1919
1920
1921
January
—
118
145
187
206
230
236
278
February
—
122
147
189
208
230
235
263
March
—
124
148
192
207
220
233
249
April
—
124
149
194
206
213
235
238
May
—
126
155
198
207
207
246
232
June
—
132
159
202
208
204
255
218
July
100
132½
161
204
210
209
258
220
August
—
134
160
202
218
217
262
—
September
110
135
165
206
216
216
267
—
October
112
140
168
197
229
222
270
—
November
113
141
178
206
233
231
291
—
December
116
144
184
205
229
234
282
—
Average for year
—
131
160
198
215
219
256
—
Wholesale food index*
(Statist)
—
142
173
225
231
245
308
—
*Second quarter of 1914 taken as 100.
Table VII. shows the average of the movements as combined
from the data in Table VI. (together with the prices of fish and
eggs) by the Ministry of Labour, each item being given the
importance estimated from a pre-war standard budget of expenditure.
For the relation of this computation to the cost of living
seeCost of Living. Except for making facile generalizations
the detailed table is more important than the summary.
The price of bread rose intermittently, but on the whole rapidly
till Sept. 1917, when its price was exactly double that of July 1914.
The rate of extraction of flour from grain was controlled from the
autumn of 1916, and government regulation flour containing an
admixture of wheat, maize, rice and other cereals in varying
proportions alone was used in the three years 1917-8-9, and during this
period the price is not that of a commodity of constant quality. In
Sept. 1917 the Government fixed the price at 9d. for the 4-lb. loaf,
became the sole purchasers of the necessary cereals, regulated the
price to millers and bakers and met the deficit by a subsidy. The
price was raised to 9½d. in Sept. 1919 to meet bakers' increased
expenses, and at subsequent dates again raised with the increasing
price of wheat till it reached 1s. 4d.; when wheat fell in the latter
part of 1920 the subsidy was gradually reduced to zero and the price
of bread maintained; in 1921 the price fell, and was 1s. 1½d. from
April to July. Flour followed nearly the same course as bread.
The retail prices of meat were determined by the wholesale prices
already discussed. Imported meat remained for three and a half
