“Inflation is when you pay $15 for the $10 haircut you used to get for $5 when you had hair!”
Sam Ewing
In 1974 when Harold Wilson won the general election for Labour, the average house was worth £9,927. And although we often think that house prices have risen at astronomical levels they have actually risen relatively in-line with average wage prices. Wages have increased 1616% from £32 per week to £517 per week and house prices have increased 1879% to an average house price of £186,544.
But neither house prices nor wages top the table. Some of the other big movers inflation-wise that have risen faster are:
Newspapers – The Daily Mail up from 2p to 60p – a rise of 3000%
Cinema Tickets – up from 45p to £9.60 – a rise of 2133%
1st Class Stamps – up from 3p to 62p – a rise of 2067%
But anything that rises at a lower level than wages will feel comparably more affordable than it did 40 years ago, for example a pint of lager, a pint of milk or a mars bar will all feel slightly cheaper in 2014 than they did in 1974.
But can you guess the product that tops the table with a massive inflation increase of 4370%? Yes, it’s cigarettes. In 1974 it would have cost 20p for 20 cigarettes and now the figure is nearer £8.74 – a percentage inflation increase of almost 2.5 times that of house prices! Makes that Brighton 3 bed terrace almost a bargain doesn’t it!