Cost of living rises

[Liebkuchen]

I was reading an article online (I can't remember where) that was talking about substantial rises in food prices and other costs affecting locals. I also remember seeing posts on here about rent rises going up.

How's this affecting you, where you are? Or is it not?

[amandagmu]

It sucks. I'm on a fellowship with a fixed per diem stipend determined like 2 years in advance by the U.S. government.

A Beida professor told me when she went abroad in January 2009 she bought an investment apartment before leaving at 14,000 RMB per sqm. When she came back in January 2010 the same apartments were going for nearly 30,000 RMB per sqm.

On a day-to-day basis I see it mostly at the grocery store and in restaurants. Seems like prices keep going up every time I return - it's so bad many places who can't afford new menus seem to just cross out the old prices, tape over them, or charge you a little more than the menu price states (like 2 kuai), causing me to argue until they point out it's inflation for everyone and not just me.

And then there's the taxi fuel surcharge which, in April, went up to 2 kuai for any ride over 3KM (it used to be 1 kuai). I don't know what other people think, but after visiting Shanghai in early May I sure feel like Beijing isn't that far behind anymore on prices. Unfortunately it still feels 5-10 years behind on quality and comfort in daily life, IMO, not to mention the political lockdown and slower internet.

[skylee]

One of my blog pieces is somewhat relevant.

[abcdefg]

Lots of price hikes in Kunming, especially in rent. Fruits and vegetables too. The taxi fuel surcharge is now 2.5 Yuan per ride.

[Liebkuchen]

@skylee- wow- that's a big jump.

If you could have lived frugally although not expat on 2000rmb(food and expenses only)a month, say a year ago, what roughly would be the equivalent now? (I know each city is different)

[Kobo-Daishi]

Dear Skylee,

Don't they have financial magazines or books on basic investing where you live?

"Investing for Dummies" and the like?

Newspapers with the occasional "how to get started investing" articles?

Kobo-Daishi, PLLA.

[Kiz]

A Beida professor told me when she went abroad in January 2009 she bought an investment apartment before leaving at 14,000 RMB per sqm. When she came back in January 2010 the same apartments were going for nearly 30,000 RMB per sqm.

Same condition on rent. It made me move back to university dormitory one year ago. 北京真是个吃人不吐骨头的鬼地方~

@ skylee

I always thought banks in HK would be much better. It seems that they just alike. Did you ever figure out your investment? I think futures market might be suitable.

If you could have lived frugally although not expat on 200rmb(food and expenses only)a month, say a year ago, what roughly would be the equivalent now? (I know each city is different)

200 yuan a year ago? How's that possible?? I spent 600 yuan in one month only for necessities except rent at my most frugal time here in Beijing last year. Now maybe 800 yuan？ I'm not sure.

[amandagmu]

200 RMB per month?! There's just no way.

Well, ok then. Here's what super frugal days over the course of a month might look like for me in Beijing:

- Transportation: On average 2 subway rides (2kuai each, 4 kuai) + 2 bus rides (2 kuai) per day (depends on bus distances, sometimes only 80 cents) = 6 kuai x 30 days = 180 kuai per month. Even if that seems overboard, half of that is still 90 kuai. And no cab rides... that's the easiest way to start draining money.

- Water: approx 1.5 liters of water per day (I don't drink sodas or things like that) = 2.5 kuai (at the grocery store) x 30 days = 75 kuai per month. Granted, if I decided to be super stingy I could fill up several bottles at the archive when they aren't looking..... Either way, I recently realized that I spend at least this much money on drinking water per month and it's the one expense I don't have when I'm living at home. The last time I went home, the minute I walked in the door from the airport I drank 3 glasses of water.

- Meals:

---Breakfast: several 油条 --or-- 煎饼 + soy milk = 5 kuai max x 30 days = 150 kuai.

[Eating breakfast at home costs me roughly the same: 4 slices of toast is ~3 kuai + a jar of jam peanut butter will cost 12-15 kuai each, need to replace every week or two. Eggs depend on the day, but maybe 5-7 kuai for 6?]

---Lunch and Dinner: Noodles, dumplings, chuan'er or similar = at restaurant: ~10 kuai; at home (instant noodles of frozen dumplings) ~5 kuai. If I want to add a vegetable dinner, another ~8 kuai eating out, ~3 kuai making it at home.

8 kuai (5 kuai + 3 kuai) x 2 (lunch and dinner at home) x 30 =480 kuai.

18 kuai (10kuai+8 kuai) x 2 (lunch and dinner) x 30 = 1080 kuai.

If you add that all up, not including necessities (toothpaste, soap, toilet paper) it still easily comes to 900-1000 per month, with more if you decide to eat out often.

As you can see, some of this depends on how frugal you want to be. Most people don't cook at home like I do (they don't have kitchens) and likely eat out for both lunch and dinner. These days, even if you eat at the student canteen at the uni (I don't since I'm not on campus most the time), prices are double or more compared to 2005. In 2005 you could eat a complete meal with several dishes at the BLCU 食堂 for 4.5 kuai; if you wanted western food the sub place above the 食堂 sold a large tuna sub for 10 kuai and a veggie sub for 8 kuai. (FYI, Subway in BJ sells a veggie 6 inch sub for 12 kuai. It was 10 kuai when I arrived last November.) The last time I was in a student canteen for food a month or two ago (Beida?) I don't think it was possible to eat more than a dish or two for these prices...

EDIT: I almost forgot about my coffee expense. I make it at home, but that still costs a lot relatively speaking-- it's extra $$ for drinking water + at least 20 kuai for a bag of ground coffee (the cheapest brand). I can't drink that Nescafe stuff... and tea just doesn't do it for me in the mornings...

[Liebkuchen]

Sorry! Didn't mean 200RMB, meant 2000RMB- I always divide by 10 to roughly get the GBP equivalent. So I meant (in my head) £200 a month and should have typed 2000RMB.

[adrianlondon]

I always divide by 10 to roughly get the GBP equivalent

Yes, it's always a shock when I visit now. When I spent 6 months in Beijing in 2006 it was 14-16 to the pound. So prices, for me, have increased a large amount just due to currency changes. But then GBP has dropped compared to everything, so I have the same shock everywhere ;)

[WestTexas]

Honestly I haven't noticed the price hikes that much, but I don't pay for my apartment or utilities, and most of the food I eat at restaurants is cheap. The price of food in restaurants has gone up 1-2 kuai per item, which isn't a big deal. The price of produce seems the same (or maybe not, but veggies are still stupidly cheap). In Shenyang, where I live, my friend rents a two floor, two bedroom apartment with a balcony for 1200/month, which I think is a great price (though I don't live in the city center). Beer still costs the same. I wonder if the northeast isn't feeling the effects of inflation as much as other regions.

My daily expenses break down as follows:

5 liters of water per day = 6 yuan.

Lunch is free at my job

Breakfast = bag of milk, banana, peanuts equals about 3 yuan

Dinner at a cheap restaurant = 10-15 yuan, or 30 for a mid-range restaurant

Before bed snack = boiled eggs, raw veggies = 2-3 yuan

Taxi to/from downtown once a week = 80 yuan, and I split this

Mandarin lessons = 80 yuan for two hours a week

Serious bar hop once or twice a month = 300 yuan each time

Other than that I don't really have any expenses. Granted my routine is a bit spartan by the standards of some, but whatever. I currently spend about 1800 per month, although I'd get that under 1000 easily enough if I cut out the bars and the Chinese lessons.

[amandagmu]

Dang West Texas, that is cheap compared to BJ! Pretty much everything you mentioned is 2-3 times more expensive in BJ - anywhere.

And a 2 floor apartment for 1200 kuai per month? Yowsers... too bad I have no reason to move to Shenyang

[imron]

5 litres of water a day?

[abcdefg]

Kobo-Daishi, PLLA.

What does PLLA stand for?

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Acronym Definition

PLLA Poly-L-Lactide Acid

PLLA Participatory Landscape Lifescape Appraisal

PLLA PHP Library for Location Applications

http://acronyms.thefreedictionary.com/PLLA

[amandagmu]

@imron: Although he might be exaggerating... I probably go through a few liters per day. After I finish my morning or evening run I usually consume 1.5-2 liters easy (this being summer that is sometimes even increased). I probably consume another liter total with meals. Then there's the coffee and/or tea (daily, ok maybe only 1/4-1/2 liter) and the water I use to make or put in food items. (Of course, if I plan to boil longer than a few minutes I use standard tap water, otherwise not.) So, on a standard day I'd say I go through 3-4 liters.

[gougou]

that is cheap compared to BJ!

I think besides the apartment, you could find pretty much all of these things at the same price in Beijing. (And I don't know what you pay for apartments in the suburbs, maybe even that would be possible?)

[WestTexas]

Yes I use 5 liters of water a day. It's very healthy to drink lots of water. If I am exercising I will drink a liter just during and after my exercise. If you are cooking you need even more. If I make soup I use over 1 liter.

[skylee]

Yes I use 5 liters of water a day. It's very healthy to drink lots of water.

Reminds me of the giant pandas -> http://www.pandasliveon.com/giantpandas/interesting-life-of-giant-pandas.html

Sometimes, because the panda is very thirsty, it will try hard to find a water source, and then indulge in water so much that it will finally behave like a drunken man, by lying by the stream. So people have a saying that "Giant Panda Drunk of Water"

[imron]

Well, that being the case, you might want to look into getting water delivered in big water cooler bottles. When I was living in Beijing you could get 19 litres for 12-13 yuan. When I was living in a second-tier city, you could get them for 5-6 yuan.

[xiaoxiaocao]

When I was living in a second-tier city, you could get them for 5-6 yuan.

Yup, 5 yuan for 19L delivered to your door! good stuff.