4 THE COST OF LIVING IN UNITED STATES IN 1926
thus seems that in 1926 the cost of living has been most
sensitive to changes in fuel and food prices. On the whole,
however, the fluctuations during the year have been rela-
tively slight and less significant than the downward tendency.
Taking the movement in 1926 in connection with the general
trend during the past five years, the outstanding fact is the
relative stability of the cost of living when viewed in com-
parison with the wide changes in the preceding years. There
was little indication in 1926 of any marked tendency to
depart from this relatively stable condition.
Food
Among the several items which make up the total cost of
living, the prices of food are the most variable. The index of
food prices in January, 1926, stood at 164. It decreased in
each following month until August, when it reached 156; in
subsequent months it increased, reaching 162 in November, a
position which was maintained in December. Compared
with January, December showed a drop of 1.29, while
August showed a decrease four times that figure. The
changes in food prices are almost exactly reflected in the
index for the total cost of living, though the latter did not
change in the same degree. In other words, the compara-
tively variable food prices are to a certain extent neutralized
by the comparatively stable prices for other items in the
cost of living.
Shelter
Although in January the index for house rents stood at the
same point, 177, as in December of the previous year, housing
was less expensive in 1926 than in the year before! During
the year 1926 the index revealed a decided and steady down-
ward tendency which in December reached 173, a drop of
2.39, for the year. The continued decrease shown in the table
marks rent off sharply from all the other items of the budget,
which, after a decline in the early part of the year, showed
a tendency to increase in the later months.
In rents, more than in any other item making up the bud-
+ The respective indexes for 1925 were March, 182; July, 179; November, 179;
December, 177,
