WARTIME PRICES

Dominion, Volume 36, Issue 103, 26 January 1943, Page 4

WARTIME PRICES

Problem Of Measurement AUCKLAND, January 23. The following comment has been made by Dr. E. P. Neale, lecturer on statistics at Auckland University College, on the work of the Census and Statistics Department. referred to in n statement on stabilization issued by the Auckland Trades Council of the New Zealand federation of Labour. . . . “All the Government Statistician has ever purported to do is to measure changes in tlie retail prices of some 210 commodities and services commonly bought by tlie workers, and between them constituting by far the greater part of the total expenditure of the average family. To include all minor items, such as eliraway seeds, would add to the expenses of compilation, out of all proportion to the train in accuracy. "'Pile Trades Council is quite in error in stating that the retail price index takes no account of the relative importance of different items in the expenditures of the people. “The war has occasioned changes in the relative importance of the different items in the family ‘budget far in excess of those that occurred during the preceding 10 years, and a strong ease can be made oiit for postponing revision of the ’weights’ till conditions have settled down after the peace, though admittedly there is something to ‘be stiid for attempting to eomnile a special wartime index based on the relative consumptions of the different articles today, if those consumptions could be accurately assessed. “Such and many another technical problem confront our Stabilization Committee. 'Would n return of our exchanges to parity with London help stabilization? If so, are there other reasons why the change should not bo made? It is. therefore, unfortunate that no professional economists anponr to be attached to the committee. I think 1 am correct in saying that nt the moment only about one nrofossional eeononiist is helping the New Zealand Government—and as a meteorologist. How different is the position in Australia, where the Economic Record for December states: ‘ln the expansion of the war effort tlie Commonwealth Government continues to craw upon economic talent, the supply of which appears to be declining in Hie face of, what appears to be n sustained demand.’ "