Hiding Inflation

The fact is, producers don’t like to raise their prices. However, because of the devaluing of the dollar, things cost more to produce. Therefore, the goal is to, rather than raise prices, deliver less without letting anyone notice. ZeroHedge had an article on how Kleenex dropped their tissue count by 13%, but made the tissues themselves “15% fluffier”. Which of those points do you think are advertised on the box? So, consumers think they are getting a more high-quality product (and perhaps the are), but the untold story is that they are getting much less of it.

This is similar to airlines now charging outrageous prices for luggage. They don’t want to raise ticket prices too much, so they charge you for luggage. In food, everything is moving to cheaper ingredients. If you want to know how much price inflation has occurred with boxed foods, go to Whole Foods and find things that are (a) organic, (b) made without corn syrup, and (c) don’t have a lot of food coloring or manufactured ingredients. That used to be the norm. Now it is a specialty item. That’s hidden inflation.

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