(_a_) _Collection of Figures for 1914._
There are obvious difficulties in the collection of figures for 1914
after so long a lapse of time, and the accuracy of these figures may
possibly be questioned.
Despite the eight years' interval, however, we believe these prices to
be reasonably accurate. The compilers of the returns were asked to get
figures in every case from the actual books kept by the shopkeepers; and
the food prices collected by us are in substantial agreement with those
collected by the Board of Trade in 1914. The latter are, as a matter of
fact, slightly higher than those collected by us, so that if they were
to be used in preference to our figures the resultant percentage
increase would be slightly lower than on the figures which we have
accepted.
(_b_) _Comparison Restricted to Strictly Comparable Articles._
A point to be noted is that in comparing prices at different dates it is
essential that articles of different quality should not be compared;
milk, for instance, is a simple commodity and is always comparable with
milk, but beef is a variable commodity inasmuch as sirloin beef is not
strictly comparable with shin beef; consequently special figures showing
the relative consumption and average prices of the different parts of
beef, mutton and bacon were obtained on Form B3 (see Appendix), and in
these cases the prices as returned for each description of meat are
separately weighted by the average quantities purchased in order to
arrive at the ultimate average prices for "beef," "mutton," etc.
As regards all other articles, it will be seen from the instructions on
the forms that pains were taken to explain that prices must only be
returned for strictly comparable articles.
(_c_) _Accuracy of Rent Figures._
A point likely to give rise to criticism is the low percentage increase
shown for rent. This figure is, however, the result of comparing the
actual returns sent us by the Town Clerks and Rate Collectors, who gave
the actual name of the street and the actual number of each house, and
on the closest investigation we have no reason to doubt the accuracy of
their figures. The average weekly rents (including rates) appearing from
those returns are:--
Average Weekly
Rent
(including Rates).
July, 1914 4s. 0d.
March, 1922 5s. 2d.
June, 1922 5s. 2d.
(_d_) _Comparison of Figures received from Post Office and other
Sources._
It will have been noted from the Table of Retail Prices given above that
on the whole there is comparatively little difference between the sets
of figures compiled by the Post Office officials and those compiled by
the Ministry of Labour and Local Government Board officials, though the
Post Office figures tend to give a somewhat higher average increase of
prices. This is brought out by the following table of the ratios of
retail prices for the main groups of commodities for the three dates:--
---------------+-----------------+------------------+-----------------
| Mid-July, 1914. | Mid-March, 1922. | Mid-June, 1922.
---------------+--------+--------+---------+--------+--------+--------
| A | B | A | B | A | B
Food | 52.4 | 54.6 | 104.8 | 102.8 | 100 | 100
Clothing | 52.7 | 52.9 | 103.9 | 101.7 | 100 | 100
Rent (C) | 78.9 | 78.9 | 100.4 | 100.4 | 100 | 100
Fuel and Light | 46.6 | 48.1 | 104.8 | 104.4 | 100 | 100
Sundries | 50.5 | 51.9 | 103.2 | 103.1 | 100 | 100
---------------+--------+--------+---------+--------+--------+--------
The 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.
(In case the meaning of this table is not at once clear, it may be
explained that the first line, for instance, means that for 100s.
expended on food by the wage-earning households in June, 1922, exactly
the same quantities and exactly the same foods could, according to the
Post Office officials' returns, be purchased in March, 1922, for
104.8s., and in July, 1914, for 52.4s. and according to the other
returns for 102.8s. and 54.6s. respectively; and so on with the other
items).
The near agreement of these figures is a strong proof of their essential
accuracy. We ultimately decided to take the average between the two sets
of figures as representing the nearest approach to the truth at which we
could arrive.
(B) The Collection of Household Budgets.
(1) _Representative Budgets._
The second stage of our enquiry was to obtain representative household
budgets, from which to compile the "weights" by which the individual
price changes might be combined into a single final figure.
For this purpose a special Form was drafted (Form B6, a copy of which
appears in the Appendix) and some 5,000 of these forms were despatched
to National School teachers in every school in the country, accompanied
by detailed instructions (of which there is a copy in the Appendix) of
the method in which they were to be completed.
Notwithstanding the difficulties of the time when these budgets were
called for, and the fact that a number of forms were held up and perhaps
lost in the post, we were able to use 308 completed budgets of
wage-earning households, received from 112 towns. This number was quite
sufficient for our purpose. These budgets were excellently filled in,
and, apart from the fact that such a number is in itself a fair
guarantee of the statistical results obtained, we are satisfied for
reasons given below of the substantial accuracy of the budgets.
(2) _Wide Scope of Budgets._
The budgets received were from a very varied class of households, and as
will be seen from the following list, embraced the principal industrial
occupations. Labourers, Fishermen, Messengers, Servants, Pilots, Barmen,
Carpenters, Boatmen, Building Contractors, Motor Boat Drivers,
Plasterers, Ship Inspector, Stone Masons, Marine Engineer, Bricklayer,
Mill-hands, Yachtman, Caretakers, Tailors, Post Office Workers,
Housekeepers, Tailoresses, Gardeners, Herds, Dress-makers, Shop
Assistants, Farm Stewards, Shoemakers, Charwomen, Dairyman, Cottage
Industries, Laundresses, Egg Packer, Milliners, Washerwomen, Fowl
Plucker, Shirtmaker, Hairdresser, Wool Sorter, Spinners, Smiths,
Woodcutters, Embroidery Workers, Fitters, Sawyers, Hosiers,
Boiler-makers, Wood-turners, Stitchers, Engineers, Body-makers,
Knitters, Plumbers, Golf Caddies, Lace-makers, Machinists, Pointers,
Road Engine Drivers, Crane-driver, Paper Maker, Motor Mechanics,
Collier, Sextons, Car Drivers, Brass-finisher, Butchers, Carters,
Bakers, Dealer, Chauffeur, Millers, Electrician, Tram Driver,
Confectioner, Watchmaker, Railway Workers, Painters and Saddlers, etc.
(3) _Compilation of Budgets._
Two methods of compiling the budgets were followed:--A simple addition
was made of the particulars of the expenditure on each item separately
recorded on each of the budgets. These particulars consisted of the
expenditure on food, sundries, and rent for one week in June, 1922; the
particulars of yearly expenditure on items of clothing, fuel and light
were reduced to a weekly average by dividing by 52, before adding. The
resulting totals gave the present average weekly expenditure on each
article, and consequently the _proportion_ which the expenditure on each
article bears to the total expenditure of the average wage-earning
household.
A more complex method of compilation was also adopted which should lead
to an even more accurate result.
It was found by analysis of the Census figures that the proportion of
children under 14 to adults (persons over 14) is approximately as 2 to
5, and an adjustment was made to bring the budgets into conformity with
this proportion in order that they might truly represent the actual
proportions of the population of the country, the assumption being that
the percentage rise in the price of articles mainly consumed by children
might be higher or lower than the rise in the prices of articles mainly
consumed by persons over 14.
The budgets were accordingly classified into three groups, viz.:--"S" or
simple households, consisting of not more than two persons over 14
years, and with one or more children under 14 years; "C" or complex
households, consisting of more than two persons over 14 years, and with
one or more children under 14 years; and "A" or adult households, in
which there were not any persons under 14 years.
It was necessary to multiply the "A" group by 3, in order to bring the
proportionate number of adults and children in the budgets with which we
were dealing into conformity with the national proportion (5 to 2). The
figures for the three groups having been totalled separately, those
obtained for the "A" group were weighted accordingly.
It was found, however, that the difference between the "weights"
obtained by the first and by the second methods were so small as to be
quite negligible, as is shown by the following tables:--
PERCENTAGE INCREASES FROM JULY, 1914, TO MARCH, 1922, AS SHOWN BY
THE APPLICATION OF POST OFFICE PRICES.[A]
----------+-------+-----------+-------+--------+-----------+---------
| | | | Fuel | | Total
Budget | Food. | Clothing. | Rent. | and | Sundries. | for all
Grouping. | | | | Light. | | Items.
----------+-------+-----------+-------+--------+-----------+---------
S+C+A | 99.8 | 97.1 | 27.3 | 120.6 | 104.2 | 95.5
S+C+3A | 99.9 | 97.3 | 27.3 | 124.9 | 104.1 | 95.7
----------+-------+-----------+-------+--------+-----------+---------
PERCENTAGE INCREASES FROM JULY, 1914, TO MARCH, 1922, AS SHOWN BY THE
APPLICATION OF MINISTRY OF LABOUR AND MINISTRY OF LOCAL GOVERNMENT
PRICES.
----------+-------+-----------+----------+--------+-----------+---------
| | | | Fuel | | Total
Budget | Food. | Clothing. | Rent.[A] | and | Sundries. | for all
Grouping. | | | | Light. | | Items.
----------+-------+-----------+----------+--------+-----------+---------
S+C+A | 88.2 | 91.4 | 27.3 | 116.8 | 97.0 | 86.9
S+C+3A | 88.3 | 92.0 | 27.3 | 117.2 | 96.9 | 87.0
----------+-------+-----------+----------+--------+-----------+---------
[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 expenditure 100 | Food 57.05
-------------------------------------+------------------------------------
Beef 5.18 | Flour 3.70
Mutton 2.94 | Oatmeal, etc .97
Fresh Pork .63 | Rice, Sago, etc. .45
Sausages, Black Puddings, etc. .82 | Potatoes 3.16
Bacon, Pigs' Heads, etc. 5.23 | Other Vegetables 1.33
Fresh Fish .61 | Tea 3.80
Cured or Tinned Fish .16 | Sugar 3.24
Butter 6.91 | Jam 1.12
Cheese .26 | Other Food .95
Margarine .18 | Meals eaten at Shops,
Lard .25 | Hotels, etc. .70
Fresh Milk 4.56 |
Condensed Milk .09 |
Eggs 3.44 | Total Food 57.05
Bread 6.37 |
-------------------------------------+------------------------------------
CLOTHING 17.48
-------------------------------------+------------------------------------
_Women's_:-- _Girl's_ (over 6):--
Coats .69 |
Hats .37 | Coats .50
Costumes 1.09 | Hats .23
Blouses, etc. .39 | Dresses .69
Skirts .21 | Stockings .20
Stockings .24 | Combinations .13
Combinations .15 | Stays .11
Corsets .19 | Petticoats .15
Underskirts .18 | Chemises .13
Chemises .19 | Boots and Shoes .71
Boots and Shoes .92 | Other Clothing .19
Other Clothing .27 |
-------------------------------------+------------------------------------
_Men's_:-- _Boy's_ (over 6):--
Overcoats .83 | Overcoats .27
Suits 2.60 | Suits .83
Hats .38 | Caps .07
Singlets .30 | Shirts .17
Drawers .30 | Stockings .12
Shirts .55 | Boots and Shoes .56
Socks .32 | Other Clothing .13
Boots and Shoes 1.33 |
Other Clothing .34 | _Children_ (under 6):--
| Clothes, Boots, etc. .45
|
| Total Clothing 17.48
-------------------------------------+------------------------------------
Rent 5.41
-------------------------------------+------------------------------------
Fuel and Light 7.04
-------------------------------------+------------------------------------
Coal 3.14 | Electricity for Cooking --
Turf 1.79 | Candles .33
Firewood .34 | Paraffin Oil .67
Gas for Lighting .40 | Other Fuel and Light .05
Gas for Cooking, etc. .29 |
Electricity for lighting .03 | Total Fuel and Light 7.04
-------------------------------------+------------------------------------
Sundries 13.02
-------------------------------------+------------------------------------
Soap 1.12 | Other Sundries 8.41
Pipe Tobacco 2.11 |
Cigarettes 1.38 | Total Sundries 13.02
-------------------------------------+------------------------------------
Total Expenditure 100.0