It is interesting to compare prices over a number of years. When I
bought my first car in Canada in 1966 (a 1964 VW for $800), the average
price of a new car (US) was about $2,650, and gasoline/petrol in Ontario
was about $0.45/gallon, or approx. $0.10/litre. In 2012, the average
price of a new car is about $30,000, a factor of 11.3, and the current
price of gas in Southern Ontario is between $1.15 and $1.20/litre, a
factor of 11.5 to 12. However, the average car is smaller, much more
fuel efficient and includes many technical and safety features that
didn't exist then. (My 2012 Honda Civic 1.8L gets better mileage than my
1964 1.2L VW, not to mention the V8 gas guzzlers that most people used
to drive.) So, in relation to the price of a new car, we are paying less
to fuel it than 45 years ago.
Based on the consumer price index in the US and Canada, what cost you $1
in 1965 costs you about $7 in 2012. However, this includes items that
have gone down or not gone up as sharply, e.g. long distance phone
calls, consumer electronics and household appliances. From my own
memory, what cost 10 cents when I arrived here in 1965, e.g. a chocolate
bar, bottle of Coke, cup of coffee or a newspaper, now costs over $1.
However, the picture is quite different in the UK; the consumer price
index has gone up by a factor of over 15 since 1966, an average of 6% a
year. Over the same period, the value of the pound against the Canadian
dollar has dropped from $3.00 to below $1.60.
--
Martin S.