Wednesday, November 10, 2010

Inflation and earnings: what is the cost of a pint of beer?

From the Telegraph

"It were all so much cheaper when I were a lad... or was it? Professor Ian Stewart looks at how the money in your pocket has really changed over the years.

The price of a pub pint of beer could soon go up to £4 and ‘has doubled in the last 19 years’ said The Guardian a while back, in an article warning about the soaring price of barley. ‘Car road tax was a mere £10 in 1950 - think of what it is today,’ wrote a motoring journalist in a different paper. Every day we are bombarded with this kind of historical comparison of prices, intended to show how everything is soaring out of control and how badly off we all are.

It sounds plausible. My first house was worth £1100 in 1971, but it would sell for about £230,000 today. That’s a big increase. But how big?"

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