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Weekend Humor: Federal Reserve Cafe Admits Inflation, Hikes Prices.
Not funny. If your meal-time serving of jello, fruit or pie is cut from 6 Oz to 4 Oz while the price stays the same ... you've just "swallowed" a 33% price increase. Seeing more and more of this out in the real world.
What color is the sky on their planet? The rise is between 3 and 33%? That's freakin' meaningless. (Such) statistics are lies and damn lies. Nevertheless, anyone who must buy food to eat has seen the prices rise over the last SEVERAL years. Same size box, but less in the box. Or a bit smaller containers, so the manufacturer can hope to fool you into paying what you used to pay--- for a bigger portion. Burger? For the price of burger, you might as well buy a filet.
"Shoppers beware: Products shrink but prices stay the same"
"Downsizing is nothing but a sneaky price increase," says Edgar Dworsky, former Massachusetts assistant attorney general in the Consumer Protection Division, now editor of Mouseprint.org, a consumer website. "I'm waiting to open a carton of eggs and see only 11."
Last week, I gave fundalarm a soft poke for writing that the reported PPI number had been good, when in fact it had been higher. Several days later, I read that the way the PPI is now calculated has been changed (I think they added some products to the equation) so I have no idea if I was right or wrong. Since a sustained rise in PPI is one early indicator of future inflation (I think it's about 6 mo. to pass thru to CPI?) this means we have yet another b.s. BLS figure that has "indeterminant usage." Isn't it funny how these re-definitions seem to occur at the most convenient times?
If you used to pay 60 cents for 6 ounces of something, it cost you 10 cents per ounce. If you now pay 60 cents for 4 ounces of the same thing, that's 15 cents per ounce. Isn't that a 50% increase, rather than 33% ?
@Tony Well... that is rather, ummm, embarrassing. The MFO grammar police force is strong and growing, but our math cop position remains open; would that be a slot you would consider? Also, for those of us who have lived long enough to know one never thinks "can't get any worse," thank you so very very much for pointing out that it already IS! [runs manic thru moonlit graveyard, rips off clothing before descending into forested bayou]
If you used to pay 60 cents for 6 ounces of something, it cost you 10 cents per ounce. If you now pay 60 cents for 4 ounces of the same thing, that's 15 cents per ounce. Isn't that a 50% increase, rather than 33% ?
Sounds like you have it correct Tony. A 33% reduction in product size actually amounts to a 50% increase in price paid. Thanks for pointing that out. Yikes ..... No wonder they try to disguise these hikes by continually shrinking package sizes. (Of course, often the old size reappears repriced & rebranded as "XXL", "Super-Size", etc.)
All of this makes me wanta run right out and buy some of those TIPS with the annual 2.2% inflation expectation built-in. Shucks! Wish the bond market wasn't closed today.
A bit harder to pull off with beer. The first to come out with a "standard" 8 oz can would likely soon loose market share to those still selling the 12 oz variety. Hank , sorry to disappoint you. Recently did a brewery tour and was given a six pack. Bottles contain330 ml. or 11.16 FL. OZ.
Yes, Jamaican Red Stripe is among those coming up short of 12 oz. per bottle, I notice. Just take a look at how UGLY this man looks WITHOUT a Red Stripe in his hand, though:
Reply to Derf: Sorry Derf - I made that remark concerning beer, but later tossed it out during the re-edit process (a speciality of mine). Sometimes my posts amount to moving targets. Thanks, however, for noting it.
For the beer lovers: Forsters' big can is actually 750 mil. That's 25.36 U.S. fluid ounces, which trumps most of the others' (similar appearing) 24 ounce cans. One reason we like it.
Comments
Thanks Scott
"Shoppers beware: Products shrink but prices stay the same"
"Downsizing is nothing but a sneaky price increase," says Edgar Dworsky, former Massachusetts assistant attorney general in the Consumer Protection Division, now editor of Mouseprint.org, a consumer website. "I'm waiting to open a carton of eggs and see only 11."
Also, for those of us who have lived long enough to know one never thinks "can't get any worse," thank you so very very much for pointing out that it already IS! [runs manic thru moonlit graveyard, rips off clothing before descending into forested bayou]
All of this makes me wanta run right out and buy some of those TIPS with the annual 2.2% inflation expectation built-in. Shucks! Wish the bond market wasn't closed today.
Hank , sorry to disappoint you. Recently did a brewery tour and was given a six pack. Bottles contain330 ml. or 11.16 FL. OZ.
For the beer lovers: Forsters' big can is actually 750 mil. That's 25.36 U.S. fluid ounces, which trumps most of the others' (similar appearing) 24 ounce cans. One reason we like it.