It is my contention that actual consumer price inflation substantially exceeds official CPI.
So I'd like to do the math and see what the truth is. I've nominated 15 items with the intention of comparing the price now versus 10 years ago. All I need now is someone to post info as to the actual price then versus now...
1. Median average house price - Sydney
2. 1 litre regular unleaded petrol - Brisbane
3. McDonald's Big Mac
4. Whole lettuce
5. Standard loaf sliced white bread
6. 1 litre whole milk
7. VHS/DVD new release overnight rental
8. 4 pack Sorbent toilet rolls
9. 30 pack Peter Jackson cigarettes
10. 375ml can Coke bought at suburban take away store
11. 4 pack "AA" Energizer batteries
12. Electricity household rate per kW/h - Melbourne
13. 1 pair Levis jeans size 92 regular at CBD department store
14. Car registration 6 cylinder sedan - Perth
15. All day unlimited travel public transport ticket - Adelaide
OK, obviously not everybody buys all of these things (I don't smoke for starters...) but they are all reasonably common products and services. Obviously it's not a perfect list but it seems a reasonable selection of things that people spend their money on.
Does anyone know the price or can point me in the direction of where to find prices for 10 years ago for these?
Needless to say, I'm expecting to find inflation somewhat higher than 2-3% that the government would have us believe.
you cant just take a spread of products look at their prices 10 years ago compared today and divide the increase by 10.
alot of the products you have mentioned would have had increaes in cost due to factors other than inflation.
eg. the cost of a pack of cigarettes not only increases with inflation but with increases also with government taxes.
I could be wrong but i thought base inflation did not include price rises due to such factors.
I mean the cost of electricity and transport often increases due to investment in infrastructure by the owner and the fact that they have to recoup their costs. As is happening in the sydney electricity market right now.
Surely there are many more factors to getting a real inflation figure.
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