The Toy Story Inflation Index

Modelled on The Cut's Devil Wears Prada Inflation Index, this compares 1996 Argos toy prices with today's and finds several have actually fallen. Taylor uses it to explain why measured inflation is tricky: cheap overseas manufacturing (China now makes 86 per cent of the world's toys) has pushed prices down, while quality has risen so much that like-for-like comparisons mislead. The standout is a clear, student-friendly explanation of hedonic (quality) adjustment, which rarely gets covered so accessibly. It ties into inflation measurement, real versus nominal values, comparative advantage and globalisation. The hedonic point stretches a little beyond the core spec but is a real enrichment for a macro measures unit, and the toy hook keeps it accessible for all students.  Read here