Real inflation rate

I was chatting to a mate today who is a farmer. He reckons his inflation rate is at least 40%, regardless of the fantasy figures from the government. He was saying feed is up 100% on last year, fertiliser the same, red diesel up 30-40% or so.

That got me thinking what my inflation rate is, I reckon its well over 10%, probably more like 20%.

Based on how you spend your money (business or personal) what do you reckon your real inflation rate is running at?

I reckon I could lower mine a fair bit by buying a few new gadgets (if I could get it past Mrs S of course).



One Response to “Real inflation rate”

  1. Harlan Grove Says:

    My own benchmark for inflation is a loaf of bread, a particular variety of bread. This particular loaf cost less than US$2.00 back in 1993 and is now more than US$4.50. That’s more than 5.6% average annual increase.

    OTOH, I also remember buying my first 20MB (nowadays too small to store the typical Excel file!) fixed disk drive in 1985 for more than US$700 and last fall I bought a 3-pack (1 for each kid) of 2GB USB flash drives for about US$60. So US$35K/GB in 1985 and $10/GB in 2007, so 31.0% average annual decrease.

    The precise basket of goods and services does matter.

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