[metesky]

This is a little deceptive. I would make the case that for many products and/or services, the real cost is actually lower -- and in some cases MUCH lower -- in 2006 than in 1981.

IMO, what you're talking about is true, but it's more a function of productivity than deflation.

[Alberta's Child]

Right -- Productivity driven by advanced technology, in most of these cases. A new car, for example, costs a lot more now than it did back in 1981. But when you take into account how much more advanced today's car is, you'll find that it actually costs a lot less. A 1981 car that was equipped to 2007 standards probably would have cost about $100,000 back then.

How would you measure the TRUE inflation/deflation in a nation's economy?