Shrinkflation – Real Inflation Much Higher Than Reported
By GoldCore
GoldSeek.com
Wednesday, 28 June 2017
Shrinkflation – Real inflation much higher than reported and realised
Shrinkflation is taking hold in consumer sector
Important consumer, financial, monetary and economic issue being largely ignored by financial analysts, financial advisers, economists, central banks and the media.
Food becoming more expensive as consumers get less for price paid
A form of stealth inflation, few can avoid it
Brexit is the scapegoat for shrinkflation by the media and companies
Consumers blame retailers rather than central banks
Gold hedge has doubled in value since 2007
Editor: Mark O’Byrne
Shrinkflation: no one left untouched
600 new words entered our official lexicon this week as the Oxford English Dictionary announced the latest new additions to their online records.
One of the words reportedly up for consideration was shrinkflation. It did not make the final cut and as a result continues to be defined by the authority as ‘a portmanteau, made from combining shrink: ‘to become or make smaller in size’, with the economic sense of inflation: ‘a general increase in prices and fall in the purchasing value of money’.
In order for a word to be accepted into the OED it must have been in use for at least five years. But the latest list suggests that this isn’t the case and exceptions can be made. The inclusion of ‘superbrat’, a word which is usually associated with the behaviour of John McEnroe in the 1970s, actually dates back to the the 1950s.
Yet, shrinkflation continues to elude the world’s authority on the English language. This seems bizarre to us given both the word and the phenomenon and something consumers have been experiencing for a number of years.
Although it is understandable in the context of an important consumer, financial and economic issue which is being largely ignored by financial analysts, financial advisers, economists and the media.
We first covered the shrinkflation phenomenon back in 2014 when we reported how Dr. Philippa Malmgren had highlighted this ‘shrinkflation’ trend in a new book.
Shrinkflation: a new phenomenon?
As we mentioned last week, shrinkflation is a phenomenon that is not unique to the current financial crisis. In 1916 The Seattle Star ran a front-page story on the issue, ‘“[Inspectors] went from bakery to bakery Thursday checking up on the bread situation…And here is what they found: ten-cent loaves of bread have shrunk from 32 ounces to 22 ounces, and standard 5-cent loaves, that used to weigh 16 ounces, now average 11 ounces.”
The Rest…HERE
