Example of Real Inflation in China
Here is a tell-tale sign of what’s happening while my wife and I have been living in China.
On a regular basis we order a Papa Johns Pepperoni Pizza to enjoy some food that tastes like home. Its not cheap - actually fairly expensive by US prices. We usually get a small 12" pepperoni pizza for 108RMB or about ~$15.50USD.
However the other night I was surprised when I ordered the same pepperoni pizza and the price jumped up 19% to 129RMB or ~$18.50USD.
It’s really a fact of life over here -- prices have been rising quite dramatically since I arrived in July. It’s not uncommon to see restaurant menus with prices scratched out and marked up 20%.
Combine inflation with the rapid decline of the dollar and it amazing how expensive things are getting in a country that is supposedly a worldwide supplier of low cost manufacturing.
I wonder what happens when China prices rise to the point that its no longer a low cost producer for US goods?
Related in General:
Save Money on Overhead Garage Storage (Aug 28, 2012) With the upcoming expansion of our family, my wife and I have been discussing the space in our home. While we have a good size home (~2,600 sq ft), its currently laid out with 3 bedrooms and 1 bonus room...
When is a SmartPhone the Right Financial Decision? (May 14, 2012) I last purchased a typical cell phone back in October 2008 with a 2 year contract when we returned from China. My old cell phone broke while we were on assignment in China and I needed something once we...
Black Friday Shopping Highlights (Nov 27, 2011) I have little interest in going out and standing in long lines to pick up a few deals on Black Friday. However we did pick up a few deals over the weekend mostly online: $159 GE Front Loading Washer @...