bbc food inflation comparison incl. ba

diego7david

Registered
heres a link to bbc.com for an article that purports to show the actual inflation on some food items for seven international cities including buenos aires

http://news.bbc.co.uk/2/hi/business/8059560.stm

when you read the graphs they show percent of inflation. they do not necessarily show that any product costs more in one place than another. just the change in price at that location. so a potato in narobi even with serious inflation could still cost less than a potato in washington dc for example.
 

cujodu

Registered
I have a student who is CFO for a company and he was once trying to explain to me the Big Mac Index... a similar thing showing the cost of Big Mac's around the world as an index for whether or not prices were overinflated in a particular country, he believes Argentina is headed for another devaluation. Don't ask me though, I still didn't understand it after he was done explaining it.
 

mini

Registered
diego7david said:
heres a link to bbc.com for an article that purports to show the actual inflation on some food items for seven international cities including buenos aires

http://news.bbc.co.uk/2/hi/business/8059560.stm

when you read the graphs they show percent of inflation. they do not necessarily show that any product costs more in one place than another. just the change in price at that location. so a potato in narobi even with serious inflation could still cost less than a potato in washington dc for example.
It seems the price of milk has gone up... thus my Volta increase. I think I'm going to reVOLTA!! =o)

I thought there was a surplus of milk not to long ago. Anyone remember that?

cujodu said:
I have a student who is CFO for a company and he was once trying to explain to me the Big Mac Index... a similar thing showing the cost of Big Mac's around the world as an index for whether or not prices were overinflated in a particular country, he believes Argentina is headed for another devaluation. Don't ask me though, I still didn't understand it after he was done explaining it.
I've heard that the Big Mac index is flawed because in the US it is the lowest price point where in other countries/cities McDonald's is still somewhat exotic/foreign & priced higher so it seems more appealing. That is to say, in other countries you can get quick fast food at lower prices where as in the US, I think you'd be hard pressed to find food much cheaper that McDonald's.
 

harpo

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The article mentions that meat may soon have to be imported because export taxes were increased to support domestic supply - so investment in the industry decreased. A fine example of the unintended consequences of meddlesome goverment policies.

Will Chistina and her bosses ever learn? Answers on a postcard, please - no prizes for correct responses.
 

mini

Registered
harpo said:
The article mentions that meat may soon have to be imported because export taxes were increased to support domestic supply - so investment in the industry decreased. A fine example of the unintended consequences of meddlesome goverment policies.

Will Chistina and her bosses ever learn? Answers on a postcard, please - no prizes for correct responses.
In today's Clarin there was a blub about outside investors building feedlots to hold 20,000 cattle... (boo!!!!)
 
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