Wednesday, August 29, 2012

Nice Infographic showing the decrease in the size of packaging for some of your favorite products. Inflation without an increase in price. I feel ripped-off.

This infographic illustrates "hidden" inflation that may not adequately captured in the governments compilation of the Consumer Price Index (CPI)---what the Federal govt. uses to measure general changes in prices from one time period to another, resulting in a measure of inflation or deflation.

If from one CPI measuring period to another the contents of a good you purchase is sold in a smaller quantity (on a per ounce or per piece basis) BUT the price of the good remains the same, is isn't that an increase in the price of the good without, well, an increase in the price of the good? 

I buy less quantity at the same price as before the "shrinkage"---My purchasing power has decreased.

The increase in the price of one good, or even a whole category of goods, is not considered inflation ("A general rise in prices").   BUT I do FEEL poorer after looking at the chart below and see how I am getting less for more. 

How about you??

Source: Good Morning Inforgraphics
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