Len Penzo's Sandwich Index

[psu256]

Since food cost comes up often, I found this post informative and humorous:

http://lenpenzo.com/blog/id21063-my-5th-annual-cost-survey-of-10-popular-brown-bag-sandwiches.html

[lentilman]

Great find!  And a great site too - added to my bookmarks.

[pom]

Yes, real interesting.

It also got me thinking about the effect of substitution on the cost of living.

                                                                                                     Annual
                                2009     2010      2011       2012      2013     Inflation
Average                   0,82       0,79       1,13       1,00       1,09      7,3%
Cheapest                 0,27       0,25       0,38       0,45       0,41      11,0%
Most expensive        2,29       2,16       4,20       1,85       2,17      -1,3%

Looks like in the sandwich world you are better off if you like fancy things, quite the contrary of what I would have thought at first.

[oldtoyota]

Since food cost comes up often, I found this post informative and humorous:

http://lenpenzo.com/blog/id21063-my-5th-annual-cost-survey-of-10-popular-brown-bag-sandwiches.html

It is interesting you quote him in relation to food, because his grocery bill from 2009 is higher than my current one now.
http://lenpenzo.com/blog/id1283-if-you-cant-live-on-40000-per-year-its-your-own-fault.html

[Deano]

I recently read that if inflation was calculated today using the same metrics as in the 70's, the US rate of inflation would be somewhere around 10%. I think the sandwich might back this up?

[pom]

I think that nobody trusts that 10% other than far-left or far-right people (because it fits their belief that the sky is falling).

Most reasonable people put the figure in the 2-4% range.

Think about the two largest item that most people consume: their house and their car. Does anyone reasonably believe that the prices for those increased 10% a year in the last 10 or 20 years (roughly x2.5 and x6,5 respectively)?

[Mr.Macinstache]

I recently read that if inflation was calculated today using the same metrics as in the 70's, the US rate of inflation would be somewhere around 10%. I think the sandwich might back this up?

This can be said in the tire industry at least... they've seen a 6-9% jump in costs over the last years. This article is a year old but outlines that. It's not 10% but 9 is pretty close. I think some people don't realize that certain industries suffer higher spikes than others. Inflation can be very concentrated in certain markets due to malinvestment.

http://www.automotive-fleet.com/blog/market-trends/story/2012/01/rising-tires-prices-take-a-bite-out-of-fleet-budgets.aspx?prestitial=1

[Deano]

I think that nobody trusts that 10% other than far-left or far-right people (because it fits their belief that the sky is falling).

Most reasonable people put the figure in the 2-4% range.

Think about the two largest item that most people consume: their house and their car. Does anyone reasonably believe that the prices for those increased 10% a year in the last 10 or 20 years (roughly x2.5 and x6,5 respectively)?

Now, I'm no economist, but I'm not sure that the CPI includes the cost of real estate.

I also didn't say inflation has been running at 10% for decades. That would be silly.

[CB]

Now, I'm no economist, but I'm not sure that the CPI includes the cost of real estate.

I also didn't say inflation has been running at 10% for decades. That would be silly.

You implied that there's some measure of inflation other than the CPI that puts the current rate of inflation at 10% per year, which is equally silly.

FYI the CPI includes housing, both paid rent and implied rent, i.e. market-based real estate costs.

[Deano]

Now, I'm no economist, but I'm not sure that the CPI includes the cost of real estate.

I also didn't say inflation has been running at 10% for decades. That would be silly.

You implied that there's some measure of inflation other than the CPI that puts the current rate of inflation at 10% per year, which is equally silly.

FYI the CPI includes housing, both paid rent and implied rent, i.e. market-based real estate costs.

Ok.