In an article discussing the new cost of living index which is to be introduced at the end of the year, the Economist of 24/3/62 says:
"Will the new index "cheat" wage bargains by showing prices rising more slowly in future, or "help" them by sh ‘ing prices rising more quickly? The answer is that the new measure will show a smaller movement than the old one would have done in a poriod when the goods of which consumption is rising most are those of which prices are rising least but will show a larger movement if consumption and prices rise together. Generally speaking people bu more things in which prices rise least, so the most usual effect may be to make prices rise rathor more slowly. But there is no hard an ast rule. our emphasis
Of course a full analysis necds to be made of this now index, and probabl will be by the Labour Research Department, but in view of what the by o means workers jour .1 Economist has to say, we would suggest that those whose wages and salaries are tied to the cost of living index would do woll to look very hard at the now indox,