TABLE 4.-Relative Importance of Items Priced for the Cost-of-Living Index in Large Cities-Continued 10.05 percent or less. Not priced. Certain goods have been added and others deleted from the index since January 1942 because of wartime changes in buying. 'Not given separately. Cost of Living in Large Cities, May 1943 THE cost of items making up nearly 60 percent of the family budget remained practically unchanged in the month ended May 15, but a rise of 1.7 percent in food prices increased the total cost of living for city workers by 0.8 percent. This increase of 0.8 percent compares with a rise of 1.5 percent in the month ending March 15 and 1.1 percent in the month ending April 15. Great variation in food price changes in different parts of the country was shown as the Bureau of Labor Statistics shopped more than 1,200 stores in 56 cities. New vegetable and fruit crops were coming into local markets and OPA flat-price ceilings which vary by cities were just becoming effective in mid-May. The largest increases in May food prices were for fresh fruits and vegetables, which were 8 percent higher. Prices of chickens continued to rise, and there was a growing scarcity at the retail level in some cities. Sweetpotatoes increased 40 percent in the period, to three times their price in May 1942. With this recent rise, food prices as a whole averaged 17 percent above May 1942 and 46 percent above January 1941. In view of the wide regional variations in food prices, the national averages for May 1943 do not describe the experience in many individual cities, or in individual families. Thus, in the case of fresh fruits and vegetables, changes ranged from an average increase of 24 percent in a New England city to a decline of 21 percent in a large southern city. Aside from food, the principal increases were in the cost of services, particularly medical care and barber- and beauty-shop services. Prices of rayon hosiery had gone down 2 percent on the average by mid-May, although the new OPA price-quality ceilings were not fully in effect. Taking account of all these changes, the cost-of-living index stood at 125.1 percent of the 1935-39 average, 7.8 percent above May 1942, and 24.1 percent above January 1941 (base date for the "Little Steel" formula). Food. The largest increases during the month ending on May 15, 1943, were for fresh fruits and vegetables which rose 8 percent on the average. Scarcity of sweet and white potatoes led to price increases of 40 and 16 percent, respectively. The price of sweetpotatoes was about 230 percent above that of the same period in 1942. The trend in meat prices as well as for fresh fruits and vegetables was also divergent sectionally and showed the first but not the full effect of new OPA dollar-and-cent ceilings which went into effect on May 17. Of the 56 cities included in the Bureau's survey, 25 had lower costs for meat and 30 higher costs, but full adjustment to the new ceilings had not yet been made in all the stores visited. Some of the changes were substantial and ranged from declines of between 4 and 5 percent in some cities to increases of nearly 6 percent in others. Prices of veal were somewhat lower in most cities. On the other hand, prices of chickens were slightly higher in nearly all areas, reflecting the general scarcity at the retail level. Prices of fresh fish, which have increased very sharply in recent months, declined with an increase in the available supply. Miscellaneous goods and services.-Aside from foods, the largest price increases were for beauty- and barber-shop services, which continued to advance, and for hospital-room charges which rose in one-third of the cities covered. These advances resulted in an average increase of 0,3 percent in the cost of all miscellaneous goods and services. Clothing. Clothing prices were on the average unchanged, but the price of rayon hosiery declined 2.0 percent, as adjustments were made to the new OPA price-quality ceiling which became effective May 15. There were scattered increases for work shirts, wash dresses, and shoe repairs. Housefurnishings.-Housefurnishings costs increased slightly, 0.1 percent, as the result of higher prices for bedroom suites, rugs and felt-base floor coverings. These advances more than offset lower sale prices for muslin sheets in some cities. Fuel, electricity, and ice.-Prices of fuel, electricity, and ice were unchanged in most cities, Higher prices for coal in Milwaukee and Minneapolis, in addition to slightly higher prices for fuels in other cities, resulted in an 0.1-percent increase in the average cost of the entire group. There was a seasonal reduction in gas rates in New York. Rent.-Rent costs have changed very little in large cities since. mid-September 1942. In the interest of economy, changes in rents are now surveyed quarterly and were last obtained in March 1943. TABLE 1.—Indexes of Cost of Living in Large Cities on May 15, 1943, and Previous Dates 1 Based on changes in cost of goods purchased by wage earners and lower-salaried workers in large cities. 2 Rents not surveyed in April and May. See text. TABLE 2.-Percent of Change1 in Cost of Living in Large Cities in Specified Periods 1 Based on changes in cost of goods purchased by wage earners and lower-salaried workers in large cities. 2 Changes through Mar. 15, 1943. Rents not surveyed in April and May. See text. |