Saturday, September 13, 2008

Salzburg und die Inflation

Inflation—we can’t run away from it, but at times we can outpace it. Things are more expensive in 2008 than they were when I last lived here in 1994. And even more expensive than in 1991 when I last had to buy food in Salzburg. From 1992-1994 I lived at a boarding school where meals were provided.

If it weren’t for the weak dollar, goods wouldn’t seem that expensive. In 2003, the dollar and euro were about 1 = 1. At present, €1.00 equals about $1.41. For example, a kilogram of apples (2.2 lbs.) costs €1.00, so instead of 2.2 lbs costing only a $1, it costs closer to $1.41.

Luckily, we have a variety of places where we can shop. We live around the corner from Hofer, the German version of Aldi which you can even find on Olden Avenue in Trenton! I used to shop at Hofer as a student in 1990-1991. Only today, instead of being a stand-alone store, it’s part of a huge shopping center which houses a Sparmarkt, another grocery store, as well as countless other shops.

Hofer is not quite like Sam’s Club where you have to buy things in bulk. But it’s very plain—items are found in aisles in their original cartons. Very little time is spent putting things on shelves. Although there are three check-out aisles, only one is ever open. Sometimes the stocking person is the same person who checks you out. He or she runs to the cash register if they see you standing in line. These are ways they’re able to keep the costs low.

Although it’s a grocery store, they surprise almost daily with the things they have for sale. One day they were selling a small refrigerator, just ONE. So I bought it. We had a SMALL refrigerator in the apartment, so I thought we could use another.

Spar is more attractive to the eye and consequently, it’s more expensive. They have a wider selection, though. They even carry Canadian maple syrup!

Those kids who’ve taken economics with me learn that inflation has risen 3.1% annually for the past 80 years. That means that an item that cost $1.00 in 1991 should cost $1.68. Interestingly, cucumbers used to cost about $1.00 in 1991. Today, they cost €1.00 or $1.41. So I happily eat cucumbers because I'm outpacing inflation by 27 cents!