HC Deb 24 November 1925 vol 188 cc1122-3
6. Mr. N. MACLEAN

asked the President of the Board of Trade whether he is satisfied that the present method of basing the cost of living on wholesale prices is reliable; and, if not, whether he will be prepared to consider the alteration of the method to basing the cost of living upon retail prices?

The PARLIAMENTARY SECRETARY to the MINISTRY of LABOUR (Mr. Betterton)

I have boon asked to reply. The official statistics relating to changes in the cost of living are based on retail prices. The Board of Trade index number of wholesale prices is a different compilation. I am sending the hon. Member a copy of a reprint from the "Ministry of Labour" Gazette for July, 1923, explanatory of the method of compiling the cost of living index number.

Mr. MACLEAN

The question I asked is about the Board of Trade method of compiling the figures which the Parliamentary Secretary has admitted are based on wholesale prices. [HON. MEMBERS: "No!"] The Ministry of Labour figures are based upon retail prices, but the Board of Trade figures are based on wholesale prices. I am asking if the President of the Board of Trade is satisfied that the method adopted by the Board of Trade in fixing the cost of living by the wholesale prices is satisfactory?

Sir P. CUNLIFFE-LISTER

I am satisfied that the Board of Trade figure based on the wholesale prices is as nearly accurate as any figure can be.

Mr. MACLEAN

Is there any intention of introducing a new method of estimating the cost of living?

Sir P. CUNLIFFE-LISTER

That question was dealt with by the Parliamentary Secretary to the Ministry of Labour, who replied that the cost of living is necessarily based on the retail prices. But it is also very important that the wholesale prices should be dealt with (and they are dealt with by the Board of Trade) in comparison with the figures of the "Economist," the "Times," the "Statist," and others. I think economists are generally agreed that the figures are as accurate as they can be.

Captain GARRO-JONES

May I ask whether there would not be obvious advantages in having the retail and the wholesale prices made out by the same department?

Mr. SPEAKER

We cannot argue that now.