Pint of Guinness vs. Irish Inflation

C

capistra

Guest
Evey wonder how inflation in some areas dear to your heart always on the downside.

For example, the price of a pint exceeds the inflation rate while IT Contract rates are in free fall.

Anyway, I put together this web page to test it out.



So, if the pint has increased in price according to the CPI from when we joined the EU in 1973 to today it would cost just €2.

Another interesting area would be the price of a packet of Taytos. I remember them be as low as 4p - probably in 1974, which would make it 39c today. Well wide of the mark.
 
capistra,

Welcome to AAM and Thanks for the really excellent 'inflation' website!

ajapale
 
Hi Capistra

Very interesting area for research. I wonder how the government take on the pint has changed? If the price of the pint has doubled in real terms, why? Who is benefitting? The employees of the pubs, the publicans, the government or the brewers?

Brendan
 
excise duty

Well the excise duty on most alcohol hasn't increased for years, so that has fallen in real terms, also fallen as a share of the retail price.
 
Re: excise duty

Of course Tayto's now come in Foil Packages so they'd claim it's an improved product. E.g. With Cars even though the Price might increase a lot they extra features are considered by some to bring down the rate of inflation since you're getting more Car.

I suppose the same could be said of the Price of a Pint, if the Pub experience has improved dramatically that should in theory allow for greater than inflation increases in price.

Of course if this were true then the extra time queueing at the Toll Bridges should cause the tolls to drop due to lower quality of service for the motorist.

The Moral of the story is get used to everything getting more expensive, and don't try to think too hard about it.

-Rd
 
Of course some things have shown huge deflation. My family's first colour TV set was a 22" Bush, which I think cost £300 in 1977 - that's €1772 in todays money! You can buy the equivalent set today for €200 or less.
 
inflation measurement

Attempting to measure inflation is facinating.
The CPI is an average of many different price rises. At any one time some prices are rising rapidly, some more modestly, some not at all and some may actually be falling(computing power).
In general prices of manufactured goods will rise more slowly than personal sevices because manufacturing is more prone to productivity gains which are mainly passed on to the consumer. This gap has accelerated recently with globalisation as lower labour costs and greater competition continue to drive the relative cost of manufactured goods.
If someone could look at the historical price of a pair of shoes I think you would find that the price increase has been less than the inflation rate.
Daltonr points out one difficulty in measuring inflation, the improvement in quality over time. It would be unfair to compare the ford Anglia my father bought in 1966 with today's focus even though they are of a similar size.
That's why the price of a pint is an excellent trend to follow. It's an iconic product that involves both manufacturing and personal service.(as Daltonr points out). The primary aim of the producer is to produce a static product. Today's pint is like your father's pint. ( I don't think this is entirely true. You don't get as many bad ones!).
In terms of personal services, historical prices of a man's haircut or a known taxi fare would be interesting.
My offering is the bus fare from Palmerstown to the City centre. In 1967 the adult fare was 8 old pence(about 4.2 cents). The last time I took the bus it was 1.34 euro, an increase of 3430%!. And don't forget it's exact change only at the stop to the driver. In 1967 there was a friendly conductor who would give change, give directions keep order on the bus and occasionally let you off your fare if you didn't have any money.
The larger point is that while the quality of manufactured goods has improved over time, often attempts to contain costs has often led to a disimprovement in the quality of personal sevices. Think Ryanair!
Regards
 
Re: inflation measurement

The Guinness Price Index shows that the price of a pint against average earnings has barely increased over the last twenty years: Celtic tiger, or no !
 
Re: inflation measurement

HI NoelC

It shows the opposite. In 1969, the average industrial wage would buy 100 pints. Today, it would buy 150 pints.

Brendan
 
Re: inflation measurement

I humbly beg to differ Brendan.

My point related to the past twenty years.

Ave wage in 1985 buys 145 pints. Today (well 2003) it buys 150.

Relative to earnings, the pint has actually got cheaper over time !!!
 
Re: inflation measurement

Apologies - I bought my first pint in 1969. If always felt as if I had to work a lot harder for it in those days.

Brendan
 
Re: inflation measurement

Too true !

Strangely, the decor in my own local likely hasn't changed since that time either. They certainly haven't upgraded the loos in 35 years anyway !

:)
 
Re: inflation measurement

As an aside, [broken link removed] has an interesting take on economics and Guinness.
 
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