Monday, March 10, 2014

Somethings you may not notice about inflation.

If you go to grocery stores periodically you may have noticed certain deceptive packaging in food items.  As you are aware, inflation stats do not include the rise in food and gasoline.  However, manufacturers, in order to keep cost down have packaged their goods differently.  Examples:  paper towels use to be 13 x 11 and were slowly downsized to 11 x 11 and then 11 x 10 and some have gone to 11 x 9.5.   Toilet paper rolls use to be 4 x 4.25 and then downsized to 4 x 4 and some have gone to 4 x 3.9.  Some drinks that used to be 64 ounces are now 59 ounces, although the bottle looks closely to the 64 ounces.  Cereal is doing the same downsizing.  Consumers may not notice this deception, but manufacturers do not want to raise prices and lose customers so they downsize their product but charge the same or just a little more.  So, as a consumer you are paying more for less.  Something people do not talk about since government would like you to think that inflation is under control.  Just like some auto manufacturers would like to tell you how far a particular car will go on a full tank of gas, without telling you that they just gave the car a larger gas tank.  But, if the consumers are as dumb as the voters, nobody will really notice. 

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