The following graph contains two lines tracked for almost a decade. Click the image to enlarge. The two lines are:
- The Consumer Price Index
- Six-month moving average of my net pay
Both series are set equal to 100 in October 2000 and changes are relative to that level. I won’t indicate which line is which but you can have a good guess!
Of course this is a bit of a moot comparison for a multitude of reasons and it really is just a graph with two lines rather than revealing anything significant. Here are just two.
- The CPI is a price index and not a cost-of-living index.
- Changes in pay should be related to changes in productivity.
And there are many many more. Still I thought it was interesting for what it is worth.Tweet