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Don’t forget inflation comes in two different shapes: direct - price increases (for the same goods)

Posted: May 2nd, 2021 - 7:17 am In Reply to: How Costco Is Masking A 14% Price Jump With Shrinkflation - The oldest trick in the retailer book is back.

or no price increase (for less quantity of goods).

Typically companies will prefer the latter to pass on increasing costs of goods to a consumer because it isn’t as noticeable. Where as if the retail sales price goes up, a consumer might reject the increase and say, “I’ll consider the competitor price to see if it is lower.”

This is the price we pay for inflated money supply. Inflation.


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