Wednesday, November 09, 2016

Shrinkflation = Inflation
Article highilghts one of the oldest tricks in the inflationary book - shrinking the contents while keeping the size the same .. now it is coming from Toblerone the chocolate maker.
LINK HERE to the article

From Our Archives
Oct 24, 2015

Why It Appears There Is No Consumer Inflation
Even Though It Is Really Much Higher
Given many salaries are not going higher at all or by much, how can consumers keep up with inflation on food or at restaurants or on everyday products? - shrinkflation .. smaller quantities, smaller sizes, lower quality, smaller packaging, dilution of concentration .. Zero Hedge: "Dear Bureau of Labor Statistics: please pay careful attention to this case study of how your CPI 'inflation' gauge, hedonically, seasonally-adjusted or otherwise, is completely inaccurate, and how what you record as 0% inflation is really 72% .. this is why said 'lack of inflation' allows the Fed to continue its zero-interest rate policy."
LINK HERE to the article
From Our Archives:
September 5, 2014
One Reason Why Government 
Data Is Not Picking Up Inflation
Pippa Malmgren explains how to look for hidden rise in prices  .. What is Shrinkflation? .. explains that before inflation begins to reflect prices rising, you begin to see companies repackage their products to hide rising costs .. The size of products begin to get smaller: you'll see smaller candy bars, fewer potato chips, a lot more air in those packages .. When customers get upset that they are getting more air than food, only then will companies raise the price.
LINK HERE to the Bloomberg article
LINK HERE to the BBC video also

Financial Repression Using Shrinkflation: "As ‘shrinkflation’ becomes no longer viable, it will soon reveal itself in the form of higher consumer prices. And with central banks around the world creating inflation as a policy measure so as to inflate away the world’s massive debt pile, the question remains as to whether the central banks will be able to control this deliberately induced inflation in an environment where ‘shrinkflation’ no longer works." 
LINK HERE to the commentary

No comments: