HC Deb 14 July 1936 vol 314 cc1874-5
60. Mr. LEACH

asked the President of the Board of Trade whether he has noted that while wholesale prices in this country are now 2 per cent. below prewar rates, retail prices are 40 per cent. higher; and can he say what cause, other than tariffs, there may be for this?

Mr. RUNCIMAN

As measured by the Board of Trade index, wholesale prices in June were about 10 per cent. higher than in 1913. There is no official index of retail prices in general, but the average increase at 2nd June, 1936, as compared with July, 1914, shown by the Ministry of Labour cost-of-living index number was 44 per cent. In both scope and basis, however, these index numbers are far from similar. The wholesale price index covers classes of goods of importance in the industry of the country but comparatively negligible in retail trade, and is based mainly on the prices of raw or simply prepared articles. The cost-of-living index, on the other hand, is concerned with goods ready for use by ultimate consumers and is affected much more by the course of wages. These and other considerations make it difficult to draw any general conclusions from a comparison of the two index numbers.

Mr. LEACH

Can the right hon. Gentleman not give me any answer to the last part of my question, as to what is the cause of this discrepancy other than tariffs?

Mr. RUNCIMAN

I cannot say anything more than I have said already.

Sir ARTHUR MICHAEL SAMUEL

Is this not another reason why the Board of Trade should now embark upon an investigation as to costs of distribution?

Mr. LEACH

Is it not clear that the cost-of-living in this country is a great deal higher than it need be?