Wednesday, October 8, 2008

Inflation and Pricing: NYC

Interesting post over at My Open Wallet on price increases vs. inflation in the last forty years here in the city. I'm somewhat surprised that some things have gone up less than the cost of inflation, while at the same time surprised at those that did: i.e. smoked salmon and luxury tickets. Admittedly I'm drawing on my own thoughts rather than my econ background but I would think that given the relative elasticity of luxury goods, they'd go up more than inelastic necessities. 

Seeing the increase factor puts in perspective more than the dollar amount, but on the top of the list of things that don't surprise me: NYU tuition


Budgets are Sexy said...

YES, i want to know ASAP what your old Econ prof. has to say about the lowest we can go as far as the rate cuts :) sorry this is randomly posted here, but you've got me curious now!

Living in NYC said...

I'll let you know when I get an answer. I'm curious too! My econ has gotten a bit rusty since I'm seven years post-grad and don't use that level of econ in my every day - but this almost makes me wish I did. That said, I'm very glad I'm not working in finance.

You know you're really keeping me motivated to keep this blog going, I love it :)