During the war the price of meat increased somewhat less than that of commodities in general. Prices were fixed in Great Britain in Aug. 1917 and consumption was rationed early in 1918; after the armistice, control was gradually released, but prices of beef and mutton changed very little during the two years after the first fixing of them. After the great drop in prices in 1921-22, whole sale prices of beef and pork remained relatively low, and those of mutton high during the period 1922-25. Sugar was controlled till the beginning of 1921, at which date the world's supply had been adjusted to the new conditions, but the supply of beet sugar did not recover, and prices were relatively high till 1925.
The prices of cotton and wool reached great heights in the boom of 192o, followed by a complete collapse in 1921. During the period 1922-25 a world shortage of supply (as compared with normal requirements) kept prices on a high level, while continued fluctuations of price hampered manufacture. The extraordinary rise in the price of flax was due to the cutting off of the Polish Russian supply, which had not recovered by the end of 1925. Space does not permit any analysis of the price movements of miscellaneous materials, or of that of rubber, not included in the Statist list.
D. Retail Prices of Food in the United Kingdom.—Table VII. shows the movement of the Ministry of Labour's index of re tail food prices. This measures the relative cost of purchasing each month exactly the same quantities and as nearly as possi ble the same kind of food as in a standard budget of working-class expenditure; this budget is based on an investigation made in 1904 and was modified slightly in 1914. During the period of control, 1917-19, the index is to some extent fictitious, since the quantities of the goods included could not be purchased, and generally no allowance is made for modifications of purchases when prices are changing unequally; but there is good reason to believe that these considerations are of little importance after 1920. There is a seasonal fall in the spring and rise in the autumn, owing to the inclusion of dairy produce, and in particular to the supposition that the same number of eggs are bought in January and April ; but not improbably this reflects a real change in the cost of nourish ment. Though the number is based on an average of prices all over the country, it is nearly applicable to all districts, since in recent years there has been increasing uniformity in prices.
The Statist wholesale food index is repeated (on the basis of July 1914) for comparison, .though the range of commodities and their relative importance are not the same in the two numbers. The rise up to 1920 is considerably smaller in the retail index, while the concurrence since 1921 is very striking, as shown in fig. 3. Retail prices in 1921 did not fall, however, so rapidly as wholesale, and it is to be expected that their movements will be later and of a smaller amplitude than those of wholesale prices.
(A. L. B.) United States.—The course of wholesale prices in the United States between 1890 and 1913, as measured by weighted index numbers (see INDEX NUMBERS) of the U.S. Bureau of Labor Sta tistics, is shown in Table I. below, and changes in wholesale and other prices between 1913 and 1938 are shown in Table II.
Table I. shows the drop of wholesale prices to a low point in 1896-97, following the long decline which began in 1865, and the subsequent rise, with occasional interruptions, to the beginning of the World War. Between 1896 and 1913 wholesale prices in the United States rose at an average annual rate of 2.3%. Table II. continues the story, with additional material concerning prices in other markets. In all price fields we find sharp war-time ad vances, drastic declines in 1920-21, moderate changes during the era of post-war prosperity from 1922 to 1929, and violent re cessions during the business decline of 1929-33. Price fluctua tions in the two major post-war trade cycles were greatest among wholesale prices and farm prices. In 1932-33 indexes for these groups were below the levels prevailing in 1913. Net changes during the period 1913-38 brought about wide price disparities. Living costs and the composite index of wage rates, security Group movements of prices in wholesale markets are in Table IV, Farm and textile products suffered most severely in the busi ness recession of 1929-32, while metals and house-furnishings showed the smallest declines. In general, as-is shown in the classi fication based on degree of fabrication, the prices of raw materials fell most sharply, while those of finished goods showed the small est declines. The subsequent record is one of general improve ment, though farm products and raw materials generally re mained at relatively low price levels and metal products, building materials and finished goods, particularly products of the heavy industries, remained high in price. This sharp discrepancy, which means at once low purchasing power on the part of agricultural producers and high costs in the markets for building materials and new investment generally, constitutes one of the persistent obstacles to enduring economic recovery.
The most comprehensive collection of price quotations on indi vidual commodities is that compiled by the United States Bureau of Labor Statistics, and available in monthly releases of that agency. Quotations on important individual commodities are pub lished in numerous trade papers and commercial journals.