HIUS 360
INFLATION INDEX ASSESSMENT ASSIGNMENT INSTRUCTIONS
OVERVIEW
This assignment will provide you with a cursory understanding of inflation in an economy and how it
affects the prices of goods and services over time. It will also allow you to form an educated opinion on
the country’s monetary and fiscal policies and understand how those can affect inflation.
INSTRUCTIONS
You will research a list of items most commonly used in your daily life. You will then complete a short
assessment of the items and information found using the template provided below. For this assignment,
use the Turabian Template and include a title page and bibliography.
In tabular form, submit a list of at least 10 items you most commonly use and purchase, including a
variety of items related to food, clothing, cleaning supplies, electronics, automobiles, gasoline, hygiene,
education, and daily fun. List the items in 5 columns, as outlined below.
Template:
Item
Description
Price Today
Price the Year You
Were Born:
<Enter Your Year>
Calculated
Inflation Rate
𝑵𝒆𝒘 𝑷𝒓𝒊𝒄𝒆 − 𝑶𝒍𝒅 𝑷𝒓𝒊𝒄𝒆
𝑶𝒍𝒅 𝑷𝒓𝒊𝒄𝒆 ×𝟏𝟎𝟎 = 𝑰𝒏𝒇𝒍𝒂𝒕𝒊𝒐𝒏 𝑹𝒂𝒕𝒆 %
You will need to locate advertisements or other evidence of the price of each item for the year in which
you were born. (Some items may not have been invented—such as a smartphone—but consider an
alternative such as the cellular phone, landline, long-distance service, and the computer—not to mention
a flashlight, calendar, games, etc.) You MUST list in the bibliography where you located the current and
previous prices for each item. Some items may share the same citation.
Then, examine the inflation rates for the items:
1. Which items increased in cost (inflation)? Which items became cheaper in cost (deflation)?
2. Account for the unit volume or quantity of items. Which items are less per unit or quality today? For
example, a computer may cost more today, but you get over ten times the power and memory that
you did 20 years ago.
3. For those items that are more expensive, explain the reasons for the increase. Take into account all
the economic and monetary variables you can.
4. For those items that are less expensive today, explain the reasons for the decrease. Take into account
all economic, political, and monetary variables that you can.
Altogether, your explanations must total around 5-600 words. This is not per item! This is for the overall
explanation portion of the assignment.
1
Inflation Index
Student’s Name
Institutional Affiliation
Course Name
Instructor Name
Date
2
Item
Description
Price
Today
Price
the
Year
You
Were
Born
(1992)
Calculated
Inflation
Rate
Gasoline
Average gas retail price (Current dollars/gallon)
2.587
1.13
228.93%
Undergraduate
school fee
In-state tuition and other fees for public institutions
9970
3286
303.41%
Michelin Tires
(225/65R17 102H). A pair of All-Season Tires.
325.98
89.90
362.60%
Detergent
Tide liquid laundry detergent 64 loads
11.97
3.89
307.71%
Mobile phone
Simon Personal Communicator compared to iPhone 12 pro
max 512 GB
1399
900
155.44%
Apples
Apples per lb.
1.49
0.99
1.50%
Baseball Glove
Baseball glove
16.50
52.96
-31.16%
TV
Color Television 19” compared to a 24” Insignia Television
99.99
299.00
-33.44%
Tennis shorts
Male tennis shorts
40.00
12.96
308.64%
Toothpaste
A tube of Colgate toothpaste
6.96
1.49
467.11%
3
Which items increased in cost (inflation)? Which items became cheaper in cost (deflation)?
Account for the unit volume or quantity of items. Which items are less per unit or quality
today? For example, a computer may cost more today, but you get over ten times the power
and memory that you did 20 years ago.
Gasoline, undergraduate tuition fees, Michelin tires, tide liquid laundry detergent, mobile
phones, tennis shorts, and Colgate increased in cost. Baseball gloves and decreased in cost.
Television sets and mobile phones are relatively cheaper per unit today compared to 1992. A
mobile phone costs more today, but you get more power, and technological usage than a Simon
Personal Communicator could offer in 1992. A 24" TV may cost less today than a 19" TV in
1992, but today's overall cost per unit of television sets is lower than the average cost in 1992.
Televisions today use lesser power and give a variety of usage options due to technological
advancements.
For those items that are more expensive, explain the reasons for the increase. Take into
account all the economic and monetary variables you can.
Inflation is the leading cause of the increase in item prices over this time period. Inflation
can either be caused by demand-pull or cost-push. It is a result of customers' high demand for
products drag item prices up. This is the most common cause of increased prices. Manufacturers
are not able to meet the demand for their products. If the producers fail to increase the prices of
their products, they might sell out. Producers result in hiking the prices of their products, a
pattern that goes on over the years. A growing economy also contributed significantly to
demand-pull since when people can make more money, they spend more.
Additionally, a discretionary fiscal policy is partly to blame for increased prices of goods. The
more the government spends, the more people have the extra money in their pockets, resulting in
4
increased demand for various items, spurring inflation. Technological advancements also
contribute majorly to increased prices for specific products. Finally, the over-expansion of the
country's money supply has continued to cause increased prices of these items. Money supply
today is more than it was in 1992, lowering the value of the dollar. The government's deficit
spending pumps money to specific sectors of the economy, creating demand-pull inflation.
For those items that are less expensive today, explain the reasons for the decrease. Take
into account all economic, political, and monetary variables that you can.
TVs today are cheaper compared to those of the same size available in 1992, mainly due
to economies of scale and technological advancements that have made things more efficient.
Today, more people can afford televisions and are changing televisions more regularly. In 1992,
there were no viable available options for people to change their televisions regularly.
Economies of scale can also be blamed for the lower prices of baseball gloves. However, some
baseball gloves are more expensive today, depending on the brand.
5
References
Amazon (2021). Adidas Men's Club 9 Inch Tennis Short. Amazon.com
https://www.amazon.com/adidas-Tennis-Short-Black-
White/dp/B07F3DH7CN/ref=sr_1_2_sspa?dchild=1&keywords=male+tennis+shorts&qi
d=1614522119&sr=8-2-
spons&psc=1&spLa=ZW5jcnlwdGVkUXVhbGlmaWVyPUEyMVhVN1hTRjlENFczJm
VuY3J5cHRlZElkPUEwNzcyODc1NThJOUxHUVBERThRJmVuY3J5cHRlZEFkSWQ
9QTA1MDc0MTNFQVhWWkdXRkRWTCZ3aWRnZXROYW1lPXNwX2F0ZiZhY3R
pb249Y2xpY2tSZWRpcmVjdCZkb05vdExvZ0NsaWNrPXRydWU=
Amazon (2021). All-New Insignia NS-24DF310NA21 24-inch Smart HD 720p TV - Fire TV
Edition. Amazon.com https://www.amazon.com/All-New-Insignia-NS-24DF310NA21-
24-inch-
Smart/dp/B0874YZVWK/ref=sr_1_1_sspa?dchild=1&keywords=19+inch+smart+tv&qid
=1614521929&sr=8-1-
spons&psc=1&spLa=ZW5jcnlwdGVkUXVhbGlmaWVyPUExS0FCNTVZQ09FVDA2J
mVuY3J5cHRlZElkPUEwNjk3MjU0OEo2N0EzWU9OMkJPJmVuY3J5cHRlZEFkSW
Q9QTAxNTMyMjAzQjhWTU5QVE04WDFTJndpZGdldE5hbWU9c3BfYXRmJmFjdG
lvbj1jbGlja1JlZGlyZWN0JmRvTm90TG9nQ2xpY2s9dHJ1ZQ==
Apple (2021). iPhone 12 Pro. apple.com. https://www.apple.com/shop/buy-iphone/iphone-12-
pro/6.7-inch-display-512gb-gold-unlocked
Morris County Library (n.d). Historic Prices – 1992. Mclib.info.
https://mclib.info/reference/local-history-genealogy/historic-prices/1992-2/
6
National Center for Educational Statistics. Average undergraduate tuition and fees and room and
board rates charged for full-time students in degree-granting institutions, by type and
control of institution: 1964-65 through 2006-07. Nces.ed.gov.
https://nces.ed.gov/programs/digest/d07/tables/dt07_320.asp
Office of Energy Efficiency & Renewable Energy. energy.gov. Fact #915: March 7, 2016
Average Historical Annual Gasoline Pump Price, 1929-2015.
https://www.energy.gov/eere/vehicles/fact-915-march-7-2016-average-historical-annual-
gasoline-pump-price-1929-2015
Ooma (2019). Cell Phone Cost Comparison Timeline. Ooma Home Phone Blog.
https://www.ooma.com/home-phone/cell-phone-cost-comparison/
U.S Energy Information Administration. U.S. All Grades All Formulations Retail Gasoline
Prices (Dollars per Gallon). Independent Statistics &Analysis.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg
&f=m
Value Penguin (2021). Average Cost of College in America. Valuepenguin.com.
https://www.valuepenguin.com/student-loans/average-cost-of-
college#:~:text=The%20average%20cost%20of%20public,not%20including%20room%2
0and%20board.
Walmart (2021). Colgate Optic White Renewal Teeth Whitening Toothpaste, High Impact
White, 3 oz. Walmart.com https://www.walmart.com/ip/Colgate-Optic-White-Renewal-
Teeth-Whitening-Toothpaste-High-Impact-White-3-
oz/417686799?wpa_bd=&wpa_pg_seller_id=F55CDC31AB754BB68FE0B39041159D6
3&wpa_ref_id=wpaqs:2sOA7ACdqk2pmxzDdfpImQofzQN8nmEjpvwsZLbXh6IeuWP
7
Uz0h2CuZcv6qa90HAgQSJ6odAn4kKNkJmVifRINwo8tOXakuB3JDHuefoAeZ_vr9Xg
PrhzuaUbfRkqZ1fv7UH-2ndBzWQunGef9-DF01IA-
yLlLkqA5O11qQjUKdeG7SRui7v2Pt4yi_llADhd7e96-
6IjMTUOAEwXXBVo2ENdg1h-
b6JAcckjee0XR4u6rK0qPYcgSYRbM8Aj6BV&wpa_tag=&wpa_aux_info=&wpa_pos=
2&wpa_plmt=1145x1145_T-C-IG_TI_1-6_HL-INGRID-GRID-
NY&wpa_aduid=dae8d1be-7524-4ac3-adb5-
bbde82e5a6da&wpa_pg=search&wpa_pg_id=a%20tube%20of%20colgate%20toothpaste
&wpa_st=a%2Btube%2Bof%2Bcolgate%2Btoothpaste&wpa_tax=1085632_9267270&w
pa_bucket=__bkt__
Walmart (2021). Franklin Sports Field Master Series 12" Baseball Glove, Right Hand Throw.
Walmart.com. https://www.walmart.com/ip/Franklin-Sports-Field-Master-Series-12-
Baseball-Glove-Right-Hand-Throw/46481027
Walmart (2021). Michelin Defender T + H All-Season Tire 225/65R17 102H. Walmart.com
https://www.walmart.com/ip/Michelin-Defender-T-H-All-Season-Tire-225-65R17-
102H/299129646
Walmart (2021). Tide Original HE, 64 Loads Liquid Laundry Detergent, 92 fl oz. Walmart.com.
https://www.walmart.com/ip/Tide-Original-HE-64-Loads-Liquid-Laundry-Detergent-92-
fl-oz/832215427
Outline
Template
1. Which items increased in cost (inflation)? Which items became cheaper in cost
(deflation)? Account for the unit volume or quantity of items. Which items are less per
unit or quality today? For example, a computer may cost more today, but you get over ten
times the power and memory that you did 20 years ago.
2. For those items that are more expensive, explain the reasons for the increase. Take into
account all the economic and monetary variables you can.
3. For those items that are less expensive today, explain the reasons for the decrease. Take
into account all economic, political, and monetary variables that you can.
4. References – Prices
