§ 37. Sir H. Roperasked the Minister of Labour how the index of retail prices, at the latest convenient date, taking prices in January, 1956, as 100 and covering the whole field of household expenditure on goods and services, compares with the corresponding index calculated on the basis only of food, housing, fuel and light, durable household goods, clothing, and footwear.
§ Mr. Iain MacleodTaking prices at January, 1956, as 100, the Index of Retail 1926 Prices at 16th October, 1956, was 103. The corresponding index calculated on the basis of food, housing, fuel and light, durable household goods, and clothing and footwear only would be 102.
§ Sir H. RoperWould my right hon. Friend agree that the Answer which he has given knocks the bottom out of the argument that for many less well-to-do people the method of calculation conceals a rise in the cost of living greater than the index portrays? To what extent is the ordinary man in the street represented on the committee which advises my right hon. Friend about the method of calculation of the index?
§ Mr. MacleodThe first part of my hon. Friend's supplementary question is, I think, perfectly true. As the analysis shows, the basic necessities have on the whole risen less in price than such items as services, tobacco, alcoholic drink and other things. A very wide selection of people are on the committee, which includes representatives, amongst others, of the T.U.C. and of the Co-operative movement.