Cigarettes or mobile phones? What’s your poison?
People can be addicted to either, and which you have chosen makes an enormous difference to the prices you face. Tobacco prices are up almost 20-fold, while the price of audio-visual and computer equipment has fallen by almost the same amount
The latest consumer price inflation data came out this week and showed prices rose 3% over the last year -- i.e. the average item that cost $1 a year ago costs $1.03 now. That seemingly moderate number was enough to have economists freaking out and sent markets into a frenzy. But the 3% average hides a very diverse range of outcomes for individual items.