§ 71. Mr. Swinglerasked the Chancellor of the Exchequer what, at the latest date, was the purchasing power of the £ as compared with 1887 or the nearest year to 1887 for which figures are available.
§ Mr. MaudlingComparison with periods before the First World War is difficult because of the absence of official statistics. Bearing in mind this reservation, it is estimated that the purchasing power of the £ in May, 1953, was roughly one-quarter of what it was in 1887. The basis of the calculation is as follows
Between 1887 and 1914 unofficial but published estimates of price changes are used.Between 1914 and 1938 the Ministry of Labour cost of living index is used.Between 1938 and 1952 the price index for all consumer goods and services calculated annually for national income purposes is used.Since 1952 the index is provisionally brought up to date by using the Ministry of Labour interim index of retail prices.