The interesting thing about inflation is that it could range from a low single digit to double digits over the modern history. We got accustomed to a low single digit inflation in the past couple decades but it did not stay that low for every country in all periods of time.

And every game of CapLab may produce different inflation outcomes.

[quote="TGLS"]If the base price in 1990 were $500, then this equates to 9.8% inflation the 52 years. From your statistics, average inflation over the time period in the game was 2.75% (Unfortunately, there is no data for the 2012-2042 time period). If this were a one time occurrence, it would be okay, but this always happens and this is where the problem lies.[/quote]

exactly.

If the base price in 1990 were $500, then this equates to 9.8% inflation the 52 years. From your statistics, average inflation over the time period in the game was 2.75% (Unfortunately, there is no data for the 2012-2042 time period). If this were a one time occurrence, it would be okay, but this always happens and this is where the problem lies.

Impressive indeed! *Gold star*

That's an impressive reply, David. :)

FYI:

The following table provides the US Historical Inflation Rate data from 1914 to the Present. For the current inflation rate data just since the year 2000, see Inflation page. The Inflation rate is calculated from the Consumer Price Index (CPI-U) which is compiled by the Bureau of Labor Statistics and is based upon a 1982 Base of 100. To view the actual Consumer Price Index data that this inflation data is calculated from, go to the Historical CPI table.

http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx

Calculate the total percentage of price inflation between two dates:

http://inflationdata.com/inflation/Inflation_Calculators/Cumulative_Inflation_Calculator.aspx

Try entering the date range from Jan 1941 to Jan 1990 on the above page, and you will get:
[color=#0000BF]"Total inflation from January 1941 to January 1990 is 803.55%"[/color]

Smart Phone is now selling for about $500 a piece. Multiply it by 800% and you get $500 x 803% = $4015.

But there are countries with higher inflation during certain periods in time. These are reflected in the numeric values in currencies like Korean Won, Japanese Yen, Indonesian rupiah.
For instance, Kindle Fire is selling at 15,800 yen at Amazon Japan: http://www.amazon.co.jp/

CapLab is a simulator of economy and business and all cases are possible.

Im in the year 2042 and the prices for all products in retail shops are between 10.000 - 80.000 $ for one product.
Is that not a bit unrealistic ? For example smart phones are selled for over 65.000 $ a piece.

[img]http://s7.directupload.net/images/121219/mkxcicb6.png[/img]