Look what I found today at Lee Valley & Veritas - a Pinocchio tape measure! Pull his nose to measure up to 5 feet; then press his ear to retract. Perfect size for taking to the furniture or hardware store - fits in your purse [another bonus!]
The tape is made of flexible cotton tape, so you can measure oddly-shaped objects of your desire. Another cheap + cheerful find [under $10] you can buy one here.
Even when his nose is growing he will always tell the truth. ;-)
[image from Lee Valley & Veritas]