Can a frog-shaped chocolate bar explain economics? So far this year, the UK has faced train strikes, nurse strikes, teacher strikes and more. Now, some workers are turning to Freddonomics to explain how even as wages rise, their pay is falling.
'Freddo Index' exposes cost of living crisis
Can a frog-shaped chocolate bar explain economics? So far this year, the UK has faced train strikes, nurse strikes, teacher strikes and more. Now, some workers are turning to Freddonomics to explain how even as wages rise, their pay is falling.
<h2 class="wp-block-heading eplus-wrapper" id="crosshead">Frogflation</h2>
The year is 2007. In Fife, Scotland, teacher Sharon Iddir has just finished an exhausting day in the classroom - and she is longing for something to eat. With an hour's pay in her pocket, or £14.60, she could buy herself as many as 146 Freddo bars from the supermarket on the road to the school. It is a tempting thought - after all, the tiny 10p chocolate frogs are delicious.
Today, Sharon Iddir is still a teacher in Scotland. Her pay has gone up, so she now has £20.50 in her pocket when she walks into the supermarket. But the price of Freddos has risen even more. When she reaches the checkout till, she can only afford 82 Freddo bars. It is a real-term pay cut of 64 Freddos per hour.
This is the Freddo Index, and it was used by Iddir to explain to people across Britain why she decided to join other teachers and go on strikeWhen people refuse to work until their demands for changes have been met. .
Most people are familiar with the concept of inflationAn increase in the price of goods in an economy. . Economists measure it using the Retail Price indexA measure of inflation published monthly in the UK. or the Consumer Price IndexA measure in inflation, tracking how much a basket of goods would cost you over time. . But some say we need a new way to show how inflation impacts people's lives - and the humble chocolate frog is the perfect example. Forget the RPI or the CPI. It is all about the Freddo Index.
Had the price of Freddos stayed in line with the average rate of inflation in Britain, Freddos would today be priced at around 15p. Yet the most common price for the chocolate frog currently stands at 25p - a staggering 150% increase.
Sharon Iddir is not alone in reaching for the Freddo Index. Across the UK, nurses, teachers and university lecturers have all gone on strike this year. All of them are citing a "real-terms pay cut" as the reason.
A nurse's starting salary has fallen in real terms by 8% since 2010. Experienced teachers will have seen a 13% real-terms drop. This may all seem rather abstract, but the Freddo Index makes it clear.
It is not the first time that food has been used for such purposes. The Big Mac Index is a way to compare the cost of living by comparing the price of a hamburger in different countries. The idea is that if a Big Mac costs the same in two countries, then the cost of living in those countries is also the same.
Yet critics point out that these methods are far from accurate. Official calculations of inflation look at the values of average shopping baskets using hundreds of items - not just Big Macs or sweets.
Yes: Changes in the price of the Freddo bar reflect broader changes in prices across the economy, as suppliers adjust prices in response to increased costs of production or changes in demand. It explains real-term pay cuts in a way no other index does.
No: The Freddo Index is limited in its ability to fully explain inflation, as it only represents the price of one specific good. Moreover, inflation is a complex phenomenon influenced by multiple factors.
Or... The "Freddo Index" is a playful concept. It is not a formal economic measure but it helps us to understand a complex idea in a simple way. The same idea can then be applied to other products helping us gain an overall understanding.
Strike - When people refuse to work until their demands for changes have been met.
Inflation - An increase in the price of goods in an economy.
Retail price index - A measure of inflation published monthly in the UK.
Consumer Price Index - A measure in inflation, tracking how much a basket of goods would cost you over time.
<h5 class="wp-block-heading eplus-wrapper" id="question"><strong>Can a frog-shaped chocolate bar explain economics? </strong></h5>
‘Freddo Index’ exposes cost of living crisis

Glossary
Strike - When people refuse to work until their demands for changes have been met.
Inflation - An increase in the price of goods in an economy.
Retail price index - A measure of inflation published monthly in the UK.
Consumer Price Index - A measure in inflation, tracking how much a basket of goods would cost you over time.