Labour, Finance, And the War; Being the Results of Inquiries Arranged By the Section of Economic Science And Statistics of the British Association for the Advancement of Science, During the Years 1915 And 1916

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Its index number was 142 in June, 1914; it rose to 161 in September, 1914; and fell to 136 in September, 1915, whence it rose to 149 in December; thus showing an advance of 5 per cent, from June, 1914, to December, 1915.
It is significant that in the same period the rise in the Statist's Index Number for the United Kingdom was 42 per cent. In 1916 prices in the United States have shown a disposition to rise very considerably. Thus, Dun's index number was 124-5 on 1st January, 1914; 119-7 on 1st
... July, 1914; 124-1 on 1st January, 1915; 124-9 on 1st July, 1915; 137-7 on 1st January, 1916, and 145-7 on 1st April, 1916; or an increase of 21-7 per cent, since the beginning of the war.
In normal circumstances, subject to conditions as to averaging and weighting (which were investigated in detail by a Research Committee of this Section from 1887 to 1890), a well-constructed index number affords a fairly close approximation to a change in the level of general prices; but there are certain exceptional phenomena at the present time which call for discussion before accepting the rise in prices as shown by the index numbers between July, 1914, and the Spring of 1916 as typical of the movement of prices as a whole.


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