Numbers and journalists don\’t really mix, do they?

One a Telegraph slide show at the top we get:

Value of money slides 30pc in 30 years as cost of goods rockets

And in the caption, on the same page, we get:

The value of money has plummeted by 67pc over the last 30 years as the cost of everyday goods has rocketed, research has found. According to a study by Lloyds TSB Private Banking, a three-fold increase in retail prices means that someone would need £299 today to have the equivalent purchasing power of £100 back in 1982. Its analysis of official and commercial figures found that a loaf of bread has increased more than three-fold in the last three decades, from 37p in 1982 to £1.24 by 2012, while the price of a pint of milk has increased at a slower rate, doubling from 20p 30 years ago to 46p.

A decline of 30% is different from a decline of 67%. A decline to 30% is very similar to a decline of 67% though.

And the really important point?

If you want to compare the value of a £100.00 Commodity in 1982 there are three choices. In 2011 the relative:
real price of that commodity is £288.60
labour value of that commodity is £429.10
income value of that commodity is £478.30

If you want to compare the value of a £100.00 Income or Wealth , in 1982 there are three choices. In 2011 the relative:
historic standard of living value of that income or wealth is £288.60
economic status value of that income or wealth is £478.30
economic power value of that income or wealth is £536.50

Real wages are substantially up over the time period.

3 thoughts on “Numbers and journalists don\’t really mix, do they?”

  1. Pingback: Chesterton, & inflation | Fifth Estate

  2. “According to a study by Lloyds TSB Private Banking, ”

    This makes the TSB another government funded fakecharity.

    This is not studying. Any fule can look up numerous inflation measuring sites that will tell you all this back to 1870 in a dozen currencies.

    This is the sort of “research” that one sees daily in our papers where some “university researcher” issues a short press release about how water makes t-shirts wet , if predictions of sea levels rising come true they will rise or something else politically correct and either sexy or scary and involving no reasearch at all. If the TSB is now being paid to act like a babysitting polytechnic then it is never going to be fit for privatisation.

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