Inflation, and the importance of investing for growth
MANY OF us intuitively think that our personal inflation rate is higher than the Stats SA calculated inflation rate. But is it? A colleague of mine came across a clipping from The Citizen newspaper of 1986, which allowed him to investigate price changes in this basket of household goods.
While it does not allow for a robust study of inflation (as is the case for the much-quoted Big Mac Index) and is not a representative basket of goods, it does provide some interesting insights—and important financial planning lessons.
Many of these items are Tiger Brands’ products, which have not been substantially value-engineered since then. For example, Crosse & Blackwell Mayonnaise still uses the same recipe, and it still comes in a glass bottle. This makes them …
