§ Mr. Ellis Smith
asked the President of the Board of Trade why the cost of living has not been reduced, in view of the reduction in wholesale prices since 1954 and the improvement in the terms of trade.
§ Mr. Erroll
The increase in the cost of living since 1954 has been due to increases in domestic costs: income from employment has increased more than output over this period and so have profits. Import prices are a little lower than in 1954. Average prices of basic materials and fuel used by manufacturing industry are about the same as in 1954.