Percentage increases from July, 1914, to March, 1922, as shown by the application of Post Office Prices.[A]Budget Grouping.Food.Clothing.Rent.Fuel and Light.Sundries.Total for all Items.S+C+A99.897.127.3120.6104.295.5S+C+3A99.997.327.3124.9104.195.7
Percentage increases from July, 1914, to March, 1922, as shown by the application of Ministry of Labour and Ministry of Local Government Prices.Budget Grouping.Food.Clothing.Rent.[A]Fuel and Light.Sundries.Total for all Items.S+C+A88.291.427.3116.897.086.9S+C+3A88.392.027.3117.296.987.0[A: Figures obtained for Local Government Board only.]
It may be mentioned here that if weights are obtained for the "S" group of households only,i.e., for an average of two adults, and 3.5 children, the final increase in the cost of living figures would be 91.2 for March, 1922, and 84.6 for June, 1922,i.e., practically identical with the figures obtained by "weighting" in accordance with all the budgets.
(4)Table of Weights.
The following Table shows the actual Irish "weights," representing the proportionate expenditure by the average wage-earning household on the various commodities, as compiled from the budgets received.
The actual Irish weights or proportions of expenditure on each item are as follow:—
Total expenditure100Food57.05Beef5.18Flour3.70Mutton2.94Oatmeal, etc..97Fresh Pork.63Rice, Sago, etc..45Sausages, Black Puddings, etc..82Potatoes3.16Bacon, Pigs' Heads, etc.5.23Other Vegetables1.33Fresh Fish.61Tea3.80Cured or Tinned Fish.16Sugar3.24Butter6.91Jam1.12Cheese.26Other Food.95Margarine.18Meals eaten at Shops,Lard.25Hotels, etc..70Fresh Milk4.56Condensed Milk.09Eggs3.44Total Food57.05Bread6.37Clothing17.48Women's:—Girls'(over 6):—Coats.69Hats.37Coats.50Costumes1.09Hats.23Blouses.39Dresses.69Skirts.21Stockings.20Stockings.24Combinations.13Combinations.15Stays.11Corsets.19Petticoats.15Underskirts.18Chemises.13Chemises.19Boots and Shoes.71Boots and Shoes.92Other Clothing.19Other Clothing.27Men's:—Boys'(over 6):—Overcoats.83Overcoats.27Suits2.60Suits.83Hats.38Caps.07Singlets.30Shirts.17Drawers.30Stockings.12Shirts.55Boots and Shoes.56Socks.32Other Clothing.13Boots and Shoes1.33Children(under 6):—Other Clothing.34Clothes, Boots, etc..45Total Clothing17.48Rent5.41Fuel and Light7.04Coal3.14Electricity for Cooking—Turf1.79Candles.33Firewood.34Paraffin Oil.67Gas for Lighting.40Other Fuel and Light.05Gas for Cooking, etc..29Electricity for lighting.03Total Fuel and Light7.04Sundries13.02Soap1.12Other Sundries8.41Pipe Tobacco2.11Cigarettes1.38Total Sundries13.02Total Expenditures100.0
Notes on the Budgets.
(a)Reliability of Budgets. Tests.
As a test of the reliability of the budget returns several sets were taken at random and were arranged in two groups having a common factor of approximately equal numbers of persons and equal total income. It was found on addition that the proportion of total expenditure spent on each description of food, clothing, etc., was approximately the same in each family and income group. Thus we treated the first 30 budgets from households with small and large incomes in this manner, dividing them so that each lot of 15 would have about the same number of persons and the same income. The selection was made without any reference whatever to expenditure, and the following were the results:—
Percentage Expenditure.
1st Lotof 15.2nd Lotof 15.Food54.353.2Clothing20.920.3Rent6.66.7Fuel and Light6.76.7Sundries11.513.1
Numbers in the Household.
Under 4834 to 13303114 and over5759Total9593Total Weekly Incomes1597s.1543s.
The Household Budgets in the "S" Group were separately tested and the following results were obtained:—
Income of Household.Proportion of Expenditure under each of the following sub-divisions:—Under £3£3£4£5£6 upwardsFood61.160.456.348.041.4Clothing15.713.719.319.417.7Rent5.36.65.08.812.4Fuel and Light8.77.67.38.19.0Sundries9.211.712.115.719.5Total100100100100100
This test showed that the budgets we used conformed with common experience, and is, therefore, evidence of their reliability.
(b)Comparison of English and Irish Weights.
The weights used in England in compiling the British index figure were compiled from budgets collected as long ago as 1904. These show a pre-war standard of living and the final index figure shows the percentage increase in expenditure necessary to maintain that precise standard of living absolutely unchanged at the present day.
We were not in possession of any Irish figures by which the pre-war standard of living could be accurately measured, and it was accordingly necessary for us to obtain budgets showing the present standard of living. Our final index figure therefore shows the percentage increase in expenditure which would have been necessary to maintain the present standard of living absolutely unchanged from July, 1914, to the present day.
It has been seen that according to the figures compiled by us, 57.1s. out of every 100s. is spent on food in Irish wage-earning class households; 17.5s. on clothing, and so on, and it is of interest to compare these "weights" with the corresponding figurescalculated by the English Ministry of Labour from the "United Kingdom" Budgets of 1904, which relate to the pre-war "United Kingdom" Standard of Living and which are still in use in England.
The following table shows the proportion of each 100s. spent by Wage-Earning Class Households which is spent on (1) Food, (2) Clothing, (3) Rent, (4) Fuel and Light, and (5) Sundries:—
Class of Commodity.In Ireland.In "United Kingdom."In June, 1922, as calculated from the Committee's Budgets.In July, 1914, as calculated from the previous column by price changes.In July, 1914, as calculated from 1904 Budgets.In July, 1922, as calculated from 1904 Budgets by price changes.A.B.C.D.(1) Food57.156.26058.6(2) Clothing17.517.01215.6(3) Rent5.47.91613.3(4) Fuel and Light7.06.688.3(5) Sundries13.012.344.2100.0100.0100100.0
It should be explained that the method of arriving at Columns B and D is as follows:—
The amounts of the various commodities consumed, as shown in the table compiled from the budgets, are left unchanged, but the prices are altered according to the prices ruling at the date under consideration,i.e., Column B shows the proportion of expenditure in 1914 on the various classes of commodities had the 1914 standard been precisely the same as the present day standard.
(C) Compilation of the Final Figure.
We were now in possession of the retail prices of the individual commodities at the different dates, and of the weights obtained from the summarisation of the household budgets, and these prices and weights for the main groups of articles are set out in the subjoined table:—
Mid-July, 1914.Mid-March, 1922.Mid-June, 1922.Irish Weights (see last par.).A.B.A.B.A.B.Food52.454.6104.8102.810010057.1Clothing52.752.9103.9101.710010017.5Rent (C)78.978.9100.4100.41001005.4Fuel and Light46.648.1104.8104.41001007.0Sundries50.551.9103.2103.110010013.0The figures A result from the returns from the Post Office.The figures B result from the returns from other Departments.The figures C were obtained from only one Department—the Local Government Board.
It now only remained for us to compile the final figure.
This was ascertained by multiplying the ratio prices of the various commodities by the "weights" appropriate to those commodities (i.e., by multiplying the figures in the first six columns of the table above by the figures in the final column).
The following table gives the result so obtained:—
Mid-July, 1914.Mid-March,1922.Mid-June, 1922.A.B.A.B.A.B.Food2992.03117.75984.15869.95710.05710.0Clothing922.3925.71818.21779.71750.01750.0Rent (C)426.1426.1542.2542.2540.0540.0Fuel and Light326.2336.7730.8730.8700.0700.0Sundries657.0674.71341.61327.31300.01300.0Total5232.65480.910416.910249.910000.010000.0
Then, taking the prices in July, 1914, as the standard and representing them by the figure of 100 we get the final percentage table.
Mid-July, 1914.Mid-March,1922.Mid-June, 1922.As Per Cent. ofA.B.A.B.A.B.July, 1914.100100195.7187.0187.8182.5
The following table shows the percentage changes so obtained for the main groups of commodities:—
March 1922 over July, 1914.June 1922 overJuly 1914.A.B.A.B.Food99.988.390.883.2Clothing97.392.089.988.7Rent (C)27.327.326.826.8Fuel and Light124.9117.2114.6108.0Sundries104.196.997.892.8All Items95.787.087.882.5
The figures in column marked "A" as before were obtained from the prices collected by Post Office officials, and those marked "B" from prices collected by officials of the Ministry of Labour and Local Government Board.
By taking the mean of "A" and "B" for March and for June, 1922, the final figures showing the increases in the Cost of Living are obtained:—
Mid-March, 1922,over July, 1914.Mid-June, 1922,over July, 1914.91.4per cent.85.2per cent.
and these are the final figures which we recommend the Government to adopt.
Notes on the Compilation.
(a)Comparison of Post Office, Ministry of Labour and Local Government Board Figures.
The close similarity between the figures supplied by the various Departments can perhaps be most clearly seen in a different tabular form.
For every 100 shillings spent by wage-earning classes in July, 1914, the following would be the corresponding amounts (as shown by the different returns) which would have to be spent in order to maintain the same standard of living in March and June, 1922.
Post Office(a)Ministry of Labour and Ministry of Local Govt. (b)Mean of columns (a) and (b).(c)Deviation of (a) and (b) from the mean.Deviationas a percentage of column (c).March, 1922195.7187.0191.354.352.3June, 1922187.8182.5185.152.651.4
The last column shows that in general the difference between Post Office, Ministry of Labour and Ministry of Local Government was 2.3 per cent. of the mean for prices returned for March, 1922, and 1.4 per cent. of the mean for prices returned for June, 1922—surely a small difference considering the instability of prices.
(b)Sundries.
A point of some importance is the following:—
In the British budgets only items of which the price changes could be accurately measured are understood to have been included.
In our Summary all "Sundries" shown in the budgets are included. But as the price change of only about one-third of them could be directly measured it was assumed that the change in the level of the prices of the remaining sundries varied in the same proportion as the change in the other four groups combined.
(D) Results of Different Weighting.
Calculations were also made whereby a final figure could be arrived at by different methods, and the following table shows results obtained:—
Percentage Increases arising by using British Weights.
Different Methods.Percentage Increase in Cost of Living in Ireland.July 1914 toMarch 1922.July 1914 toJune 1922.(a)By applying British Weights in 1914 to the Committee's Irish Prices of all commodities in 1914 and 1922 the percentage increase in the Cost of Living would be84.880.2(b)Taking Irish Prices for Food in 1914 as collected by the British Board of Trade, but the Committee's Prices for all other commodities in 1914 and all commodities in 1922 the increase would be76.671.0(c)Taking British Prices for food in the "United Kingdom" in 1914, but the Committee's Prices for all other commodities in 1914 and all commodities in 1922 the increase would be72.167.3Prices obtained entirely on Irish weights and prices, and recommended for adoption are91.485.2
As regards this table it should, however, be pointed out that the commodities selected by us are not in all respects identical with those selected by the British authorities and that the application of the weights, although broadly speaking correct, could not be accurate in every detail.
It only remains for us to express our gratitude for all the assistance given to us by the officials of the Departments already mentioned and by the staff assisting in the actual compilation. Our thanks are especially due to Mr. C. J. Barry, of the Department of Agriculture and Technical Instruction and to the National School teachers who furnished such excellent budgets.
(Signed)John Hooper,Chairman.T. K. Bewley.T. Mac Giolla Padraiᵹ.Stanley Lyon.
4th August, 1922.
Form A.
DIRECTIONS.
1. All prices should be quoted in pence, and should be cash prices at the shop (not delivered).
2. Please note the quantity mentioned in the first column in each case, and let your figures correspond.
3. If actual prices paid for any item are not available—leave space blank.Do not estimate.
4. The figures quoted for the month of March, 1922, should be those prevailing on the date on which you fill up the form.
5. In the column headed "Observations," please furnish any particulars concerning the retail prices of food in your district, which, in your opinion are worthy of observation.
6. Fill in on the back page of the form particulars of the sources from which information as to the prices of the commodity has been obtained, for example:—
Commodity.Source.Nature.ButterJohn Macken, Main StreetLarge Shop—Day BookEggsPersonal knowledgeDirect Country supplyEggsMrs. O'Kane, Dublin RoadHousehold Pass Book
7. The figures representing the majority of the sales are the figures required. Exceptional prices are of no value.
8. In every case you should check your information, whether given of your knowledge or after investigation by enquiry from more than one source.
RETAIL PRICES OF CERTAIN FOOD COMMODITIES IN _________________________AT UNDERMENTIONED DATES.(City, Town, or District).
RETAIL PRICES OF CERTAIN FOOD COMMODITIES IN_____________________________AT UNDERMENTION DATES.(City, Town, or District).Commodity.191319141922Observations.Jan.AprilJulyOct.Feb.JulyFeb.Mar.Beef (Irish).perBest cutslb.Second partslb.Rough meatlb.Mutton (Irish).Best cutslb.Second partslb.Rough meatlb.Bacon.Smoked (piece)lb.Smoked (rashers)lb.Unsmoked (piece)lb.Unsmoked (rashers)lb.Shoulder (piece)lb.Shoulder (rashers)lb.American (piece)lb.American (rashers)lb.Fresh Pork.Chopslb.Steakslb.Puddingslb.Sausages.Beeflb.Porklb."Limerick"lb.Lardlb.DrippingButter.lb.Irish Creamerylb.Irish farmer'slb.New Zealandlb.Danishlb.MargarineFirst Gradelb.Second Gradelb.Third Grade.lb.Cheese (give brand or other description).Eggs.First Gradedoz.Second Gradedoz.Third Gradedoz.Milk.FreshquartButtermilkquartSkim MilkquartTinned Milk.Irish (give size of tin)Imported (give size of tin)Bread (per 2-lb. loaf)Flour.HouseholdstoneHousehold per sack of ___stonesBest American per sack of ___stonesMeal.OatenstoneWheatenstoneIndianstoneRicelb.PotatoesstoneSugar, White granulatedlb.TeaBest qualitylb.Cheapest qualitylb.Coffee, Groundlb.Cocoa.Shelllb.Tinnedlb.Jam, Irish (give name of kind in most demand).Please add any information available as to prices of the following commodities, giving description of each item:—Fishlb.Vegetableslb.Poultrylb.Fruitlb.Signature_____________________________Date_________________________