Hi Bob,
Not sure if you have been aware of this post by Pippa Malmgrem in Bloomberg. She talks about developing price inflation and how companies are shrinking their products while charging the same price as before. This is something I take quite seriously as a sign that inflation pressures are developing.
http://mobile.bloomberg.com/news/2014-09-03/from-chocolate-to-beer-shrinkflation-is-unseen-pressure.html
Friday, September 5, 2014
Bureau of Labor Economist Warns on Price Inflation Pressures
An economist, who is a regular EPJ reader and works at the Bureau of Labor Statistics, the agency that assembles the consumer price index and the producer price index, emails:
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I saw that on Venezuela, my native country, over 12 years ago. One day I opened a bag of ruffles, and found 4 potato chips.. The rest of the bag as air.. it's happening now in the US.. and the people think, I am paranoid and conspiratorial nut.
ReplyDeleteNonsense the Keynesians will scoff. Smaller packaging is just the free market adjusting to consumer demand for smaller portions
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