Financial Times FT.com

Passing trade

By Tim Harford

Published: August 11 2006 14:52 | Last updated: August 11 2006 14:52

The coffee-chain cappuccino is an excellent barometer of pricing, since it is, unlike a salad or a plate of spaghetti, a uniform product. The Economist magazine has taken advantage of this fact by constructing a “Starbucks tall-latte index” to check currency valuations, but budget constraints for the humble Undercover Economist meant that my own investigations took me no further than Watford Gap.

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