XN000022-1974-04-01 — Page 7

MONDAY, APRIL 1, 1974

OF TOUCH WITH REALITY, THERE WAS A GROWING NEED TO UPDATE IT SO

AS TO KEEP ABREAST WITH PRESENT-DAY CONDITIONS.

THE EXISTING CONSUMER PRICE INDEX, WHICH COMPRISES THE

GENERAL CONSUMER PRICE INDEX AND THE MODIFIED CONSUMER PRICE INDEX,

IS BASED ON A HOUSEHOLD EXPENDITURE SURVEY CONDUCTED BETWEEN

SEPTEMBER 1963 AND AUGUST 1964.

+SOME CHANGES IN THE POPULATION'S CONSUMPTION AND LIVING

PATTERNS HAVE BEEN MADE DURING THE PAST DECADE AND THESE CALL FOR

A REVISION OF THE INDEX, + THE SPOKESMAN NOTED.

!

BY WAY OF EXAMPLE, HE OBSERVED THAT HOUSEHOLDS ARE NOW

SPENDING LARGER PROPORTIONS OF THEIR TOTAL EXPENDITURE ON FOOD

AND TRANSPORT, AND SMALLER PROPORTIONS ON SERVICES, ALCOHOLIC

DRINKS AND TOBACCO.

NONETHELESS, THE SPOKESMAN STRESSED THAT OVER THE PAST YEARS

MINOR ADJUSTMENTS TO THE COVERAGE OF THE CONSUMER PRICE INDEX HAD

BEEN MADE FROM TIME TO TIME TO BRING IT MORE IN ACCORD WITH THE

CHANGING SITUATION.

THE CURRENT HOUSEHOLD SURVEY, WHICH IS IN AN ADVANCED STAGE,

INVOLVES SOME 3,000 HOUSEHOLDS WITHIN THE MONTHLY EXPENDITURE

BRACKET OF $400 AND $3,000.

RANGE.

THE 1963/64 SURVEY COVERED HOUSEHOLDS IN THE $100-$2,000,

+

ANOTHER NOTABLE FEATURE OF THE CURRENT SURVEY IS THAT IT

TAKES INTO ACCOUNT THE CHANGES IN THE GEOGRAPHICAL DISTRIBUTION

OF HOUSEHOLDS SINCE THE LAST SURVEY.

/+A LANGS

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