What do the Tooth Fairy and the Big Mac have in common? They are examples of “whimsical” indicators that measure the economy in unconventional, creative ways. These types of offerings showcase how information can be presented in both entertaining and personally relatable ways, such as connecting with familiar experiences. For example, who, as a child, has not been excited about a visit from the tooth fairy or, perhaps when more grown, occasionally indulging in a Big Mac? Here are just a few unconventional indicators that I have run across over the years, with some being included in the Cottrill Research virtual index collection.
Food-Related
Big Mac Index – The popular Big Mac Index, by The Economist, “shows how burger prices differ across borders…using patty-power parity to think about exchange rates.” Basically, this index uses the price of a Big Mac to measure the PPP (purchasing power parity) between two foreign currencies.
Beer Purchaser’s Index – The NBWA Beer Purchasers’ Index is an informal monthly release that is an indicator of industry beer purchasing activity. It is similar to Purchasing Managers’ Index.
Waffle House Index – This is another popular index that is more risk-related (serious) as it assesses hurricane damage by observing an affected area’s Waffle House. “Green means the restaurant is serving a full menu, a signal that damage in an area is limited and the lights are on. Yellow means a limited menu, indicating power from a generator, at best, and low food supplies. Red means the restaurant is closed, a sign of severe damage in the area or unsafe conditions.”
Special Occasion/Holiday
Tooth Fairy Index – The Tooth Fairy Index shows the Tooth Fairy’s average giving and compares it to the stock market to show how the value of a lost tooth relates to the U.S. economy. Interestingly, the average value of a single lost tooth decreased 6% over the past year, while the S&P 500 experienced a 20% increase during the same period.
Halloween Candy Price Index – Scholaroo publishes this index that shows Halloween candy price changes across all 50 states. Maryland had the highest Halloween candy price change from 2020 to 2023, while Alaska had the smallest.
The PNC Christmas Price Index – This annual index uses the song, “The Twelve Days of Christmas,” to show the cost for each of the gifts given. In most years, the price changes closely mirror those in the U.S. Consumer Price Index. Mintec (now Expana) also publishes the Christmas Dinner Index.
AIER’s (American institute for Economic Research) Thanksgiving Cost Index – This index includes the six CPI subcategories: turkey (and other poultry), sauces and gravies, bread (rolls and biscuits), canned fruit, vegetables, and pies and cakes. Also tracked is the price of food away from home and other non-food costs, such as transportation and grooming. Mintec (now Expana) and the America Farm Bureau Federation also publish price indexes.
Image by Port Sundries from Pixabay
