The New York Times asked yesterday whether Americans with a car in the driveway, a flat-screen television and a computer with an Internet connection can be described as “poor”.
In the United States, material goods – televisions, computers and cars – are at their most affordable in ten years, all having steadily dropped in price since 2005.
However, the cost of items that have traditionally helped pull Americans out of poverty – education, childcare and healthcare – have become far more expensive. Families’ everyday expenses also remain under strain from a steady increase in the cost of food and little change in the price of housing.
What would the same analysis of the cost of living look like in the UK?
We created a UK version of the chart in the New York Times’ story, using real prices calculated from the British consumer price index. The story was pretty similar:
The recovery in the world’s leading economies is strengthening, according to the Tracking Indices for the Global Economic Recovery, the Brookings Institution-Financial Times index of the global economy.
Explore the index with this interactive graphic. You can read more analysis from Eswar Prasad, Karim Foda, and Arnav Sahu on the Money Supply blog.
The March 19 Budget will be delivered against a background of broad economic positivity, but that tone may not sit well with everyone. Since George Osborne’s speech this time last year, fortunes have been mixed: the labour market has been slow to pick up in the East Midlands, the north has been hit by job closures and production of transport equipment has fallen.
Elena is a 26 year old Italian woman with a degree in child psychology who has been working in London as a nursery teacher for nearly a year. She moved to the UK after months spent looking in vain for a job in Tuscany, a region where the unemployment rate, at 7.9%, is well below the Italian average of 11.3%.
But Elena is not counted among more than 16,000 Italians that moved to the UK, according to official statistics updated for the FT by the Italian Ministry of Interior. These numbers are based on the registry of Italians living abroad (AIRE). Elena has a vague knowledge of this register but decided not to sign up for fear of losing important rights and services (including healthcare) in her home country. Read more
Turmoil, panic, retreat: it’s not been a pretty start to the year for emerging market currencies and stock markets. Here, in seven charts, is the story of 2014 so far.
1. The equity context
As the base of the turmoil is the reverse of the post-crisis trend in capital flows, which began last summer on talk of the Fed taper. Money is leaving the emerging markets and returning to Europe. EPFR Global, which tracks investment flows, estimates that emerging market equity outflows hit $12.2bn in January.
Aberdeen’s economy is booming. The gateway to Britain’s offshore oil and gas reserves, it has long helped to buoy up Scotland’s economy. And now with a wider economic recovery kicking in, it’s acting like Viagra on the area’s house prices.
Property values in Aberdeen and the surrounding area grew faster than anywhere else in the UK in 2013, according to new data produced by estate agents Savills exclusively for the FT.
Aberdeen has even outpaced last year’s hotspot, Elmbridge in Surrey. Read more