A Lesson in Burgernomics: Why Have Burgers Drastically Risen in Price?
Had the price of your local hamburger gone up?
Sure it has. Did you notice by how much?
Try about 7% in the past year.
That sucks, doesn't it? 7% in just one year!!!!
Ever hear of "The Big Mac Index?" Me either. But, well, there is.
It is an inflation marker that was created back in 1986. Believe it or not, it is now a global standard for inflation.
It is a lighthearted guide of purchasing power. That's the short answer.
Burgernomics was never intended as a precise gauge. Yet the Big Mac index has become a global standard.
We often focus on prices at the gas pump or grocery store. The fact is every little thing has gone up. It was just a matter of time before fast food prices became noticeably more expensive.
Restaurant menu prices increased 6.9% between March 2021 and March 2022.
It was the largest 12-month increase since 1981.
Grocery store prices rose significantly more. About 10% between March 2021 and March 2022. Also the biggest rise in prices since 1981.
Overall consumer prices were up 8.5% from last year.
Those prices were driven by a 48.0% surge in gas prices.
The prices of used cars and trucks are 35% above last year.
Just a couple of years ago we had the strongest economy in just over 50 years. The middle class got a big raise in pay due to natural economic reasons.
That's all gone now, and then some.
So, what changed?
We had gone from less government involvement in our business and personal lives to more.
SERIOUSLY, that's the leading factor.
Reverse that trend and we can go back to the grand life we were living just over 2 years ago.