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Consumer Price Index or CPI, looking beyond surface "Price" to relative cost compared to your income or "budget"

When gasoline sold in Iran for $0.22 or twenty two cents per US gallon, if you look at Americans near Seattle paying $6.00/ gal, that blurs the actually difference in cost. 

The same would also be true if you compared retail sales of gasoline in Venezuela, the average working person in Venezuela only makes about $10 dollars, Ten Dollars per day, so even though gasoline only sells for $0.13 per U.S. gallon, in Venezuela, if we take $10 for daily wage, the average person near Seattle, Washington, USA makes $345 per day, now for the math, please follow along to understand

Seattle, Average Daily Wage $345 so buying a gallon of unleaded regular 87 gasoline for $6

6/345 = meaning the CPI only $0.02 very affordable, super cheap, even if 1999 only $0.99/gal

Venezuela, Average Daily Wage $10, so buy a gallon of 95 octane unleaded gasoline only $0.13

0.13/10= meaning the CPI only $0.013 very affordable, compared to $0.02

Together

Gasoline CPI in Venezuela $0.013

Gasoline CPI near Seattle $0.02

Math S-CPI / V-CPI || $0.02/$0.13= about 150% more expensive for Americans near Seattle

In Honk Kong, unleaded gasoline sells for $15.20 US per US gallon, yet when I talked to men from Hong Kong they said "that's because almost no-one drives a car in Hong Kong, its built on a cliff where there are walking bridges connecting most housing to most businesses, and they have great public transportation, so only the wealthiest people in remote part of Hong Kong own a private automobile, as that for them the only practical way of getting around.

For many Americans in many American suburbs or rural areas and even many American cities, where a car, truck or SUV, officially light duty passenger cars are the only time efficient practical way of getting around. 

I am not sure about passenger car use in Venezuela, since that probably varies considerably, and I have no personal knowledge about vehicle use, and only know that the US CIA deposed Madero, Nicolas, the despot who was not running the show in line with western interest, while being cruel in terms of police abuse of citizens and insulating himself as the only leader corrupting elections so he is the only one who wins, at times even having his opponents murdered to make sure he wins. 

This post was to help people understand that the relative price of at item locally, varies considerably

A tall latte from Starbucks in Switzerland almost $7 while that same tall latte in Turkey cost $1.16, noting the Swiss milk used differs from the Turkish milk, wages are different in Switzerland vs Turkey, & there are layers of other differences in economic, social, society, person, lifestyle, CPI, GDP and on and on. 

The CIA fact book uses sales data of goods sold to track foreign economies, noting that H2SO4 or sulfuric acid of immense use value in broad array of industries, so tracking a countries consumption of sulfuric acid can tell you a lot about the economy of that country when you combine it with other similar information to create an Economic Snapshot for relative comparison with other economies. 

So Americans are paying about the same or more for gasoline at $3.50 to $6 per gallon as people in Venezuela only paying $0.13 cent per gallon US. Yet for someone paying $15.20 per gallon in Hong Kong the world's highest retail price for gasoline. 


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