Tag: shrinkflation

Guest Post by Ron Paul

President Biden may have recently made history as the first president to discuss snack chips in the State of the Union message. He used snack chips to illustrate the phenomenon of shrinkflation. Shrinkflation occurs when businesses reduce the amount of goods sold in order to avoid raising prices. President Biden pointed out that businesses hope that, since both the price and the size of the package remain the same, most consumers will not notice they are getting fewer chips, cookies, or whatever other product has been affected by shrinkflation.

Continue reading “Blame the Fed for ‘Shrinkflation’”

Authored by Michael Maharrey via SchiffGold.com,

Inflation robs you of purchasing power by driving up the price of everything you buy. You see the impacts of inflation every time you go to the store. But sometimes inflation hits you in a more subtle way that’s difficult to see – through “shrinkflation.”

I experienced shrinkflation first-hand last weekend.

Inflation-driven rising prices don’t just hit consumers. In fact, they typically impact producers first. As the cost of materials, labor and equipment goes up, companies feel the pinch. Eventually, they pass those costs on to their customers.

But raising prices is bad for business, so sometimes, companies find other ways to cut costs. They shrink packages or simply put less stuff in the same size box. While the price stays the same, you get less product.

Shrinkflation doesn’t show up in the CPI and consumers often don’t even notice, but the effect is the same as rising prices. You ultimately end up with less stuff.

It is stealth inflation, robbing you of purchasing power in a back alley.

Continue reading “Shrinkflation: Robbing Us Quietly In Back Alleys”

Authored by Michael Maharrey via SchiffGold.com,

We are all keenly aware of price inflation. We notice those rising prices every time we go into a store. But the inflation boogeyman is hitting you even harder than you realize.

Not only are you paying more for pretty much everything you buy, you’re getting less.

Literally.

It’s called shrinkflation.

Continue reading “Shrinkflation: You’re Paying More And Getting Less”

Guest Post by Simon Black

After a truly wonderful event over the weekend in Austin, Texas with about 130 of our Total Access members, I hopped a plane to San Diego, California for a flurry of meetings today.

It would be hard to imagine a nicer place. California has extraordinary nature, from its breathtaking coast to inland treasures like Joshua Tree, Yosemite, and Redwood.

The weather, especially here in southern California, is pretty perfect. The sun shines constantly, seemingly everyone is fit and beautiful, and it’s loaded with so many of the things people crave — wealth, celebrity, etc.

Economically there has been a history of natural resource abundance in this state, including the legendary gold rush in the mid 1800s, oil and gas, and incredibly fertile land.

Continue reading “Welcome to Shrinkflation: Government Edition”

Via ZeroHedge

The continued decline in Treasury yields has prompted many short-sighted arm-chair analysts to declare that the Fed was right about inflationary pressures being “transitory”. Of course, as Treasury Secretary Janet Yellen herself admitted, a little inflation is necessary for the economy to function long term – because without “controlled inflation,” how else will policymakers inflate away the enormous debts of the US and other governments.

As policymakers prepare to explain to the investing public why inflation is a “good thing”, a report published this week by left-leaning NPR highlighted a phenomenon that is manifesting in grocery stores and other retailers across the US: economists including Pippa Malmgren call it “shrinkflation”. It happens when companies reduce the size or quantity of their products while charging the same price, or even more money.

Continue reading “Grocery Stores Are Masking Price Hikes Via “Shrinkflation””