Inflation: What it cost then, what it cost now

[ThomWV]

From around 1970 until now:

Eggs (dozen): Then $0.25, now $1.75
Modest (3br) home: Then $25,000, now $150,000
Family automobile: Then $3,000, now $25,000
Gasoline (gallon): Then $0.35, now $3.20

Please feel free to add to the list.

[TommyO]

1. some points about your comparisons

Egg prices vary quite a bit, locally I can get a dozen for $1.29, under the inflation adjusted price of $1.35

Home prices are definitely higher than simple inflation would account for.

The average car cost $3900 in 1970, a bit over $21,000 in today's dollars, however today's cars have features that didn't exist in 1970, and are far safer for their occupants, a worthwhile trade in my opinion.

In 1971 an 18" Sears color TV, complete with wireless remote cost $429.95, in inflated dollars that would be a bit over $2200. $2200 today will buy a large, widescreen LCD or plasma TV.

[HughBeaumont]

2. Now, what was the average income compared to those prices?

In 1969, the price of an average home was twice the yearly family income. Now it's 4-6 times as much while our wages have pretty much stagnated since then (we even work longer hours than our 70s counterparts).

Factoring inflation from 1970 gas prices - gas at it's WORST should be no more than 2.20 a gallon today.

The dollar likely went a lot further than it does now.

[haele]

3. Try a ten year spread - and a specified local - that hits harder

San Diego east county (El Cajon, CA)- 1997/2002/2007

Median Income - $32K/$42K/$45K yearly
% at or below poverty line - 19%/18%/20%

Average at year end from semi-national supermarket like Albertson's/Kroger's, regular store brands -
Eggs (dozen) - $.99/$1.05/$1.85
Bread, standard sandwich (lb)-$.55/$.75/$2.00
Milk (gal)- $1.50/$2.05/$3.75
Soda - store brand (2 liter) $.89/$.99/$1.29
Apple Juice, store brand, frozen (makes 1/2 gal)- $.75/$.99/$1.50
Meat, ground chuck (lb) - $.89/$1.19/$2.99
Chicken, whole (lb) - $.59/$.65/$1.19
Lettuce, Romaine (ea) - $.50/$.65/$1.10
Carrots (lb) - $.45/$.50/$1.09
Tomatos (lb) - $.50/$1.00/$2.45
Toilet paper - 4 pack - $1.05/$1.19/$2.25

Gasoline, unleaded (gal) $1.03/$1.50/$3.15

New basic Toyota Corolla sedan(average family car)- $10,500/14,500/15,500
Average monthly payment - new car - $150/$225/$400
Monthly county transit pass - adult - $25/$45/$60
Monthly water and sewer bill - $30/$35/$60
Montly gas and electric bill - averaged over year (central heating) - $55/$95/$110
Home, resale, 3bdrm - $140K / $225K / $415K
Average mortgage - $1300/$1550/$3300
32" color TV new - $599/$399/$345
Average Home Computer setup with printer, new (no freebies)- $1500, $1200. $1000


Charts like this show basic inflation trends and compares them to actual cost of living, which is what people will notice. It doesn't matter if there is no inflation on big ticket entertainment items like computers and TV's, it's the basics - wage increases, poverty line fluctuation, housing, food, transportation costs, that really count to the average person.

Haele