A curious state of things is revealed by the analysis of the British Board of Trade figures for January. While the cost of living (including rent, rates, etc.) has advanced during January from 125 to 130 per cent. over pre-war level, the cost of food alone has gone down by one point. On January 2 it was 135.9 ver cent. above pre-war level; on February 2 it was 134.9 per cent. That, however, is small comfort, but it is a reminder that when we are talking about the recent increase in the cost of living we must blame other things than food.
Commenting on the general situation as regards prices the "Morning Post" says:—In discussing the cost of living, however, we must not forget the subsidies which are paid from taxes. There is the bread subsidy which keeps the 4lb. loaf at 9}d., whereas, on world prices, it ought to be somewhere in the neighbourhood of 1s. 2d. or Is, 3d., and most sound econ-arnists think it time this subsidy ceased, both on grounds of finance and public policy. The cost of living would then be considerably increased, but it is argued that so long as there are subsidies People will not realise the necessity for economy.
It should be noted that the rise in food prices is in such foods as we hive to import, mainly from America, and 18 due very largely to the depreciation of the value of the pound sterling as measured by dollars. The only remedy is more production for export, and the fact that this would do more than eny-thing to bring down prices should be borne in on the working classes. That cannot be fully done so long as there are subsidies.
Text read from the printed page and cleaned; old type leaves the occasional error.