Ever notice that the 2 quart container of Orange Juice is really less than 2 quarts, or the pint of Hagen Daz ice cream is really 14 ounces. These are changes made by big food companies to raise prices without the appearance of raising the price. The package size is close enough to the original size and the price is the same, the hope is that the consumer does not notice that they are getting less for more money. If enough companies do this, is this masking underlying inflation and ultimately making the economy worse in the long run? My hunch is yes, by deceiving the public, the public may not understand that inflation is really occurring. When inflation indexes are measured is this size deflation being accounted for in the over statics? Again my suspicion is no.
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Notes from Silicon Valley
The shrinking size of items in the grocery store.
Ever notice that the 2 quart container of Orange Juice is really less than 2 quarts, or the pint of Hagen Daz ice cream is really 14 ounces. These are changes made by big food companies to raise prices without the appearance of raising the price. The package size is close enough to the original size and the price is the same, the hope is that the consumer does not notice that they are getting less for more money. If enough companies do this, is this masking underlying inflation and ultimately making the economy worse in the long run? My hunch is yes, by deceiving the public, the public may not understand that inflation is really occurring. When inflation indexes are measured is this size deflation being accounted for in the over statics? Again my suspicion is no.
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