The Big Mac index is indeed a thing, which is surprisingly helpful.
This gives a whole, sad new meaning to “i can haz cheezburger”
A big Mac wasn’t .50 in 1980. I remember it being at least $1. The earliest I can find sources for say $1.6 in 1986.
The New York Times previously reported that a Big Mac in New York cost 85 cents back in 1974.
a simple Big Mac cost just $1.60 in 1986, according to The Economist, which introduced its Big Mac Index that same year.
From this article.
Honest question, why is this not how inflation is measured?
I feel like the basket of goods chosen in Australia is nonsense, considering rent went up by like 50% in two years, and prices in the supermarket have been insane, somehow inflation numbers only ever cracked the high single digits per year.
I haven’t looked into it deeper, yet, but seems fishy, and cherry-picked.
I think one reason is it’s the other way around, the cart is leading the horse. One problem with using a basket of goods to measure inflation is that it cannot keep pace with the substitutions consumers make. Consumer choices can switch really quickly but the basket of goods used to measure that needs to be workshoped before it can be used. It’s in part, because it’s impossible to have a perfect snapshot of a market.
Could we not at least make various unchanging standards?
Like, housing & food inflation index?
Is that not vague and unchanging enough?
I know sourcing the data isn’t a walk in the park, but I know for a fact Victoria collects information on the first one pretty accurately.
I think we should have a “base needs” basket, because that’s never going to change. People need to eat, people need to sleep.
Thanks for indulging me in my vague, unlearned on the topic, questioning!
