The Price of Haircuts

Statistics New Zealand continues to prove itself the most fun stats agency in the world. Here's their infographic on the price of haircuts and the difficulties of quality-adjustment. And, here's their more detailed analysis.

I happily attend a barber (formerly of Manchester Street, now of Ferry Road) who gives me something close to the 1951 haircut for about $20. I am forbidden from attending any barber who would give me the 1981 haircut.

We'd also expect that non-traded, labour intensive goods like haircutting would outstrip the overall inflation index; productivity increases in haircutting have been smaller than those in other sectors, and the sector does have to compete for labour.