Can a frog-shaped chocolate bar explain economics? Workers across the UK have gone on strike this year. They are using the Freddo Index to explain why.
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'Freddo Index' explains cost of living crisis
Can a frog-shaped chocolate bar explain economics? Workers across the UK have gone on strike this year. They are using the Freddo Index to explain why.
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What's happening?
The year is 2007. In Scotland, teacher Sharon Iddir has finished a day at work.
She walks to the supermarket. With one hour's pay, or £14.60, she can buy herself 146 Freddo chocolate frog bars. Each one costs 10p.
Today, Sharon Iddir is still a teacher in Scotland. Her pay has gone up, so she now has £20.50 in her pocket. But the price of Freddos have also gone up, to 25p each. With £20.50, she can buy 82 Freddos.
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This means, she has in reality had a pay cut - of 64 Freddos.
Sharon uses this example - named the Freddo Index - to explain why she went on strikeWhen people refuse to work until their demands for changes have been met. to ask for better pay.
Experts do not talk about the Freddo Index when they discuss rising prices. But many say it is a useful and easy way of showing how rising prices affect people's lives, even when their pay rises too.
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Can a frog-shaped chocolate bar explain economics?
Yes! This is a simple and easy way to explain how rising prices affects everyone's lives. It is better than using words only experts understand.
No! The Freddo Index is not very helpul, because the price of most things have not risen by as much as Freddos.
Keywords
Strike - When people refuse to work until their demands for changes have been met.
‘Freddo Index’ explains cost of living crisis
Leap frog: The price of a Freddo chocolate bar has risen far beyond the rate of inflation. Glossary
Strike - When people refuse to work until their demands for changes have been met.