The Cost of Living in the United States

Report Outline
Reemergence of the Cost of Living Issue
The Cost of Living Issue in the 1920 Campaign
Measurement of Changes in Cost of Living
Recent Increases in Retail Prices of Food
Effects of Price Changes on Purchasing Power
Special Focus

Reemergence of the Cost of Living Issue

Rise in Living Costs Since March, 1933

The Steady Rise during recent months of food prices, rents, and other necessaries has attracted more attention to the cost of living than at any time since 1920, when prices reached an all-time high. According to the best available monthly index, that of the National Industrial Conference Board, which takes 1923 as 100, living costs during March stood at 82.4, an increase of 5.0 per cent over March, 1934, and of 14.8 per cent over March, 1933.

Living costs touched their lowest level of the depression in April, 1933. Except for minor setbacks, they have mounted steadily in the last two years. The rise of 34.6 per cent in food costs has been the sharpest advance.

The general level of retail prices remained about the same in March as in February, but indications are that the advance has been resumed during the present month. Retail gasoline prices were raised three-fourths of a cent a gallon in eastern marketing areas on April 8. Butter prices jumped nearly two cents a pound at Chicago on April 5, following reports that stocks held in warehouses there were the smallest ever recorded. During the first week in April, restaurant prices in New York City were raised 10 per cent, and similar increases were reported in Boston and San Francisco. Chicago restaurants have been gradually raising prices for several weeks, and it is stated that the advances will be continued.