Rip of Britain? Are we paying more to live in the UK? Cost of living in world cities compared.
Across the UK media recently, we’ve seen a growing number of articles and commentary to the effect that UK residents are paying over the odds for everyday goods and services compared to our international counterparts in other world cities. Across a wide range of goods and services from food to childcare to travel, it seems as though we here in the UK are stumping up extra cash.
Given the tough conditions UK households have endured over recent years and with no end sight, you can certainly see why some would see a headline like this and feel their blood boil. This is especially true when the same company is charging a different price to different consumers for exactly the same product. For example, a particular type of phone released in one market is around $99 cheaper than another.
Economists have a word for this phenomenon and it’s called price discrimination. Legal yes but it does raise a few eyebrows. What price discrimination relies on is imperfect knowledge i.e. consumers in each of the different markets are in the dark about prices in other markets or have no way of buying them anywhere but their own market.
However, online consumer finance firm, 247Moneybox have dug deeper into the findings and challenged the sources and samples used in the press articles. Using their own research and stats they created the below shown infographic: