Why does it not always add up?. What is Inflation? Definition Inflation is a sustained increase in the general level of prices for goods and services.

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Presentation transcript:

Why does it not always add up?

What is Inflation? Definition Inflation is a sustained increase in the general level of prices for goods and services. It is measured as an annual percentage increase. As inflation rises, every dollar you own buys a smaller percentage of a good or service. In other words What cost you $100 in 2000 Cost you $ according to the Bureau of Labor Statistics

Cost from then to now This is the price of a Ford Coupe in 1926 $520 How much would this car cost today? Bureau of Labor Statistics Inflation rate Calculator Bureau of Labor Statistics Inflation rate Calculator $6,336.74

Cost from now to then Ford Coupe 2010 $20,995 - $35,995 What would this cost in 1926? Bureau of Labor Statistics Inflation rate Calculator Bureau of Labor Statistics Inflation rate Calculator $1, $2,953.79

Why such a difference? The coupe back then a lower model?

Cost from then to now In 1921 the Cadillac touring model cost $3940 How much would this cost today? Bureau of Labor Statistics Inflation rate Calculator Bureau of Labor Statistics Inflation rate Calculator $48,013.02

Cost from now to then Cadillac touring model 2009 $36,560 - $58,575 How much would this cost in 1921? /inflation_calculator.ht m /inflation_calculator.ht m $3, $4,861.04

The Comparison Then Now Ford Coupe 1926 $520 Ford Coupe 2010 $1,722 - $1,953 Cadillac 1921 $3940 Cadillac 2009 $36,560 - $58,575 Ford Coupe 1926 $6,336 Ford Coupe 2010 $20,995 - $35,995 Cadillac 1921 $48, Cadillac 2009 $36,560 - $58,575

Why the difference? Why is there a difference with the Ford but the Cadillac is closer to the same?

Cost from then to now Buick Touring Car Model-D 1921 $ /inflation_calculator.ht m /inflation_calculator.ht m $7,832.43

Cost from now to then Buick LaCrosse 2010 $27,085 - $33,015 /inflation_calculator.ht m /inflation_calculator.ht m $2, $2,739.86

Why the difference? Again there is a big difference why?

Comparable?

Hudson Coach 1926 Kia Soul 2009 Cost then $1,165 Cost now $14, Cost then $1, $1, Cost now $13,300 - $16,950

Does this transcend other areas?

Assignment Options Research Paper Research Project Explain why vehicle prices have exceeded the inflation rate. 3 page minium Take a given 10 year period and chart the price trends for 6 items over that period. And graph the trend to determine future prices.

Research project Example