Michael's Mars Inflation Index

by
Michael Bond
Founder, Sterling-Bond Escrow Services & Rumbler Cars

Twitter:  @mbprosperity

"All the social, economic and environmental problems facing the world today can be solved,
the problem is that the solutions are not politically-correct."

Michael Bond

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Article: 1st, September, 2014

A simple alternative and personal measure if hidden and unreported inflation in the UK economy over the last five years using the Mars bar.


How is inflation effecting you and your household, good, bad, indifferent? In the current recession we've not really had much discussion of inflation, not like the 1980s for example. The administration in Parliament reports a low inflation rate but is that accurate?

I believe there is a hidden inflation not measured or reported on. Here's my discovery - Michael's Mars Inflation Index.

Mars bars, like many sweets, have been shrinking for several years. As the recession bit deep in our lives the Mars bar became a smaller bite. Year by year the size and number of bars in a packet at my local store has shrunk dramatically. But the price has remained the same.

A few years ago a discounted pack at one British pound (£1) had five good-sized bars. Then they began to shrink. A couple of years later these slightly smaller bars reduced from five to four in a pack. This year the four-pack became a three-pack.

As a very crude estimate over the last five years the shrinkage has amounted to about fifty percent (50%), five bars down to three and roughly a 15-20% reduction in size. All for one pound.

Combining the effect in the smaller size and number of bars this amounts to a price inflation of about 80-100%. Over the last five years this is equal to about 20% annual price inflation. That's eight times higher than the rate currently measured by the administration (approx. 2.5%?).

This effect doesn't apply universally to all products, each has its own inflation rate, but this is a hidden effect in our personal cost of living that should not be ignored.

(Note this is for the discounted price of £1.00. The normal retail price for a pack of five bars used to be £1.25. Today the retail price for a three-pack is £1.34. I leave you to calculate the inflation in that price, or perhaps as a useful exercise for school children?)

 

Image chart of Michael's Mars Inflation Index

 

END.

 


 

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Background

Michael Bond is designer of the Rumbler Sport Car, (www.Rumbler.co.uk) a new concept in off-road adventure car design for wealthy enthusiasts and collectors around the world. His background includes over a decade's work in the finance sector where he begin to draw up plans for a new economic strategy to stimulate the revival of the UK economy. The Rumbler Sport Tank is the first step in delivering that strategy by stimulating new technology investment for export.

As a former finance specialist over the last few years he has focussed his attention on the development of an alternative economic strategy for the UK and world economy through the stimulus of new technology innovation, design and the arts.

In his estimation the true unappreciated economic potential of the UK is enough to solve all UK economic, social and environmental problems without additional increases in taxation or regulation.  This is the basis of the Commonwealth Prosperity Plan, a "Plan B" for Britain.

 


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[Key words, etc:  Mars bars, inflation index, measure of inflation, inflation rate, pound sterling decline. These pages are subject to frequent changes.  Subject matter relates to the economic strategies of the British government, with regard to the banking financial crisis, the ongoing austere recession and factors to revive the economy through such measures as quantitative easing, tax cuts, reduction in planning permissions and much more.  Benefits of the Prosperity Include large-scale employment solution to the national housing crisis, protection of the green belts and countryside against urbanisation.]

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Acknowledgments: Vulcan photography in Woodford section, courtesy of Tim Bell