H.—43

Notice was also taken of the cost-of-Hving regimens of other countries. The regimen as finally determined comprises a total of 238 items, and, in addition, house rents. The distribution of the items over the various groups and sub-groups is as under : — Number Number Food Group — ofTtems. Miscellaneous Group — of items. Groceries (including potatoes and onions) 18 Knres .. .. .. ..2 Dairy-produce .. .. (i Crockery .. .. .. .. (> Meat (including fish) . . .. .. 22 Furniture . . .. . . 12 Fresh fruit .. .. .. .. 2 Household cleaning.. .. 7 Fresh vegetables .. .. .. 4 Ironmongery and hardware .. .. 37 Fuel and Light Group .. .. .. 4 Papers, periodicals, and school station - Clothing, Footwear, <&c, Group — ery .. .. .. .. 6 Clothing and footwear .. .. 96 Toilet and personal services .. .. 5 Household drapery .. .. 8 Postages and telegrams .. .. 2 Tobacco .. .. .. 1 Total items .. .. .. 238 In defining the number of items it should be noticed that in some instances two or more varieties of an important article are included in the regimen (e.g., woollen socks, worsted socks) ; these are counted as separate items. In other cases only one item appears in the regimen, but quotations are taken and averaged for two or more different varieties of the article (e.g., men's boots, tooth-paste, kettles) ; only one item is counted in such cases. In general an item has been counted whenever an individual weight is assigned. The complete regimen, together with quantity units and the weights assigned to individual items, is listed in Appendix A. GROUP WEIGHTS To ensure that each of the five representative expenditure groups into which the regimen is divided receives its correct relative importance in the calculation of the index it is necessary to determine the proportionate amount spent by the average household on each group in relation to the total expenditure on all groups combined at the base date. In other words, the group indexes must be weighted. Group weighting is rendered necessary by the fact that the regimen samples the various groups of item that it covers, and therefore does not include all the items of any given group which actually enter into the household budget. For example, whilst the Food group is widely representative of the essential foodstuffs bought by the average household, yet it is not feasible to include and measure the prices of all such items actually purchased. The application of appropriate group weights to the group indexes, based on relative expenditure on all items in the base period, means that the final " all-groups " index does take account of all the budget items, and not merely those that arc priced in the regimen. In assessing group weights the Index Committee was faced with the difficulty that no representative household budget collection of recent date was available. The weights were therefore decided upon after consideration of the proportion of expenditure on the several groups as indicated by — (a) The 1930 budget collection of the. Census and Statistics Department after adjustment for price-changes in the various groups between February, 1930, and February, 1942 ; and. (b) The Standards of Living Survey of Tramway Workers and Boot and Shoe Operatives, 1939, after adjustment for price-changes in the various groups between February, 1939, and February, 1942. Notice was also taken of the. relative group expenditure as adopted in the retail indexes of other countries.

The average of budgets (a) and (b) above was computed and adjusted to allow for rationing. With the adjusted average as a basis, the Committee, after taking into consideration other relevantfactors, adopted the group weights set out in oolumn (3) of the table below : — I"■\:t I L I A t

It will be noted that the group weights adopted bear a close relationship to the weights in columns (1) and (2), but embody slight adjustments which were introduced after all the relevant factors available to the Committee were considered. The weight for food (39) was, in the opinion of the Committee, in keeping with present-day actualities. For rent the weight assigned (25) is somewhat higher than that indicated in the other two columns, but in the view of the Committee 25 per cent, more truly represents the position at the present time. The fact that the group weights adopted total 100 per cent, does not imply that the regimen represents 100 per cent, of household expenditure, but merely that the proportion of expenditure actually covered (estimated at approximately 85 per cent.) is raised to a 100-per-cent. basis for convenience of calculation. Appendix B lists the group and also the sub-group weights, and makes a comparison with the Government Statistician's retail index.

8

(1) " (2) (3) A TESffirtL (IJ AVe^^SS d(6) «-P Weight adopted Rationing. Rationing. h ? the t*° m ™ttee. Food .. .. .. ' .. 39-0 40-6 39 Kent .. .. .. .. 23-2 24-1 25 Fuel and Light ...... 6-6 6-9 7 Clothing and Footwear, &c. .. .. 16-4 13-0 15 Miscellaneous .. .. .. M-8 15-4 14 100-0 100-0 100-0