Show BUSINESS T THERMOMETER St S INFlATION OH J 4 5 t 46 6 PRICE AVERAGE J Price advances from 1921 to the resent have not represented ion they merely eliminated the then n maladjustment of prices between agricultural and nonagricultural Commodities A study tudy stud o of the United States bu bur bureau bu- bu r reau au of labor wholesale commodity price Index number by the Harvard lIar committee on economic research in indicates lit lit- that prior to the war prices could rise or or fall about 6 per cent from normal without an any Inflation or deflation The average price level el pf of the In Index Index index In- In dex from 1923 to 1924 figured with 1913 as a base was However those years ears were abnormal because agricultural prices s averaged only as compared with for the the nonagricultural prices In 1924 though for the first time since 1920 agricultural and nonagricultural cultural price prices came together at Consequently there might b bemore bs be more justification is assuming the represents the normal normal line line and not 51 Applying the 6 per cent Increase we find that acc according to to past ex experience experience ex Inflation should begin at or depending upon which price level Is assumed to be nor nor- mal nral At present the Index which of course is always six weeks late still lies close to 60 so it does lOes not show that Inflation has started Copyright CoNright 1925 Associated Editors Edi Edi- tors tois Inc t |