Inflation In The UK | How Property Prices Compare To Other Consumer Products
Emoov, a popular property website in the UK, made a list about significant price changes in UK over the past 40 years with surprising results. The list ranked the top 14 products which underwent the highest price hikes during the said period, and, surprisingly, it’s not property prices which rose to the top.
After much deliberation, the top honors went to a pack of cigarettes. From £ 0.20 a pack in 1974, it underwent a 4370 per cent rise to £ 8.74 in 2014 due to high taxation.
Average house prices, on the other hand, reached the fifth spot on the list. 1974 was the year Harold Wilson won the general elections, and back then, the average home value was under £10,000. These days, buyers would have to prepare £186,544 for a regular property for sale. That’s a whopping1879 per cent jump.
Popular food and beverage items, such as the BigMac, Mars bars, and a pint of lager, also underwent significant price changes over the decades.
When McDonald’s opened their first branch in the UK in 1974 at Woolwhich, 1 order of BigMac would only cost £ 0.40. 40 years and an explosion of branches later, a BigMac would now cost you £ 2.69 for a 673 percent hike.
A pint of lager at the local pub cost only 20 pence back then, but now it would set you back £3.19, and believe it or not, the price for 1 Mars bar jumped an astonishing 1300 per cent despite decreasing in size. It was sold for £ 0.06 before, but it has since increase to £ 0.79.
As for auto motives, Ford’s Escort Mark II was originally priced at £1299 when they first launched the model. Currently, a Ford Focus Hatchback are sold at £13,995. That’s a £12,696 difference or a 1077 per cent price increase.
Other miscellaneous items included in the list are the Daily Mail, cinema tickets, and game consoles which took over the 2nd, 3rd, and 13th position. Daily Mail managed to increase the price of their paper from £ 0.02 to £ 0.60, resulting to a 3000 per cent rise. Cinema tickets followed suit from £ 0.45 to £ 9.60 for a 2133 per cent hike.
But it isn’t just the cost of products that have been going up. Weekly wages also made it to the list. It ranked sixth overall with a 1616 per cent rise from £32 in 1974 to £517.
Granted, many economists still feel that the increase in wages have not matched the overall effects of the increasing cost of living. After all, an average person’s income is usually dependent on one or two sources depending on how many jobs he/she may have. However, each person’s needs remain constant, and all of these needs cost money. Simply put, a person’s income stream is limited but expenses are abundant.
This is the reason why many financial advisors recommend people to invest money and create passive income streams. As inflation occurs, depending purely on employment for income may not be enough to save money. And as such, there are a growing number of financial help gurus and books coming out.
Looking at how tough today’s economy can be, it may be easy for older folks to look back and think how much better life was in the ‘good old days’. But it’s not all bad news to be living today. Back in 1974, it was much more difficult to go abroad. But with increased competition in the aviation industry, travelling is more accessible to the regular folk. The internet and mobile devices have made communication with friends and relatives so much more convenient for anyone. I doubt anyone would fancy snail mail over email. So while life may seem so much more complicated now due to today’s frenetic lifestyle, many activities have still been simplified.