52
edits
Burrito index: Difference between revisions
→Methodology
(Created page with "The Burrito Index is a concept used informally to measure changes in the cost of living and to understand the real-world impact of inflation on everyday expenses, particularly for ordinary individuals. This index is not an official economic or financial indicator but is often cited in discussions by economists and writers seeking to illustrate economic trends in a relatable way. Jason "Thor" Hall maintains a custom Burrito Index specifically crafted to track th...") |
|||
| Line 14: | Line 14: | ||
The methodology for the Burrito Index is straightforward: | The methodology for the Burrito Index is straightforward: | ||
# '''Selection of a | # '''Selection of a representative item''': The index begins by selecting a common consumer item, in this case, a burrito. The choice of a burrito is somewhat arbitrary but practical, as it includes various ingredients and can serve as a general representation of everyday consumption. It is also very delicious. | ||
# '''Tracking | # '''Tracking''': Researchers or analysts regularly monitor the cost, weight, calories etc. of a burrito from a specific source or type of restaurant over a defined period. | ||
# ''' | # '''Comparing changes over time''': The core analysis involves comparing how the cost of the selected burrito changes over time. If the price of the burrito increases significantly, it may suggest rising inflation or a decline in the purchasing power of consumers. The comparison can include other measures, specifically weight. | ||
# '''Extrapolation to | # '''Extrapolation to broader trends''': While the Burrito Index itself is mostly limited to the burrito itself, it can be used as a simplified representation of the overall cost of living. An increase in the cost of the burrito that outpaces income growth may indicate that individuals are finding it more challenging to afford basic necessities. It can also be used as a representation of spending power or equivalent income expressed in units of "burrito". | ||
=== Use and Limitations === | === Use and Limitations === | ||