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The rising costs of goods and services is getting hard to ignore. Even those who did not notice the inflation right away are now realizing their bills are going up.

It is not just inflation, which is obvious. But we are also dealing with shrinkflation. In either case, your dollar is not going nearly as far as it did early this year and the constant rising grocery bills are making it more apparent.

Shrinkflation is when companies begin to offer less of a product in the package but keep the price the same. It is the same as raising the price, but less noticeable. And if we are being honest, many Americans do not pay much attention to how much they getting, the focus on the price.

“Downsizing is really a sneaky price increase,” Edgar Dworsky  a former Massachusetts assistant attorney general and longtime consumer advocate says. “Consumers tend to be price conscious. But they’re not net-weight conscious. They can tell instantly if they’re used to paying $2.99 for a carton of orange juice and that goes up to $3.19. But if the orange juice container goes from 64 ounces to 59 ounces, they’re probably not going to notice.”

Until things really shrink and prices rise, some Americans will remain unaware that their dollars are becoming worthless by the day.

If consumers were the rational creatures depicted in classic economic theory, they would notice shrinkflation. A study by John T. Gourville and Jonathan J. Koehler analyzed data from the market for cereal and other sectors and found that consumers are much more gullible than classic theory predicts. They are more sensitive to changes in price than to changes in quantity. Companies, of course, have known this for years, reported NPR.

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    Consumers are oblivious to everything unless the television tells them to focus on it. As inflation soars, which it will continue to do so, we will see more obvious signs of shrinkflation. At what point will the masses notice? It is tough to say, but perhaps when they figure out they are going back to the grocery store more often AND spending more money, they will notice something is going on.

    There is no way to continue to hide the inflation and coming hyperinflation. The creation of massive amounts of dollars always has this same effect. There are now more dollars chasing fewer goods as the supply chain continues to take a beating. That will result in inflation.

    Companies have already admitting to acting when it comes to pricing as their costs rise. They either have to raise the prices of the products they are already producing, or they shrink the size and keep the price the same, which really is a more deceptive practice.

    If you do not have precious metals, consider getting some now before this blows up and gets out of control. You should also consider saving some cash in case things start to rapidly cost much more and you run out of disposable income. Do what you feel is best to protect your family from the rapid decline in purchasing power of the dollar.

    Best Regards,
    FutureMoneyTrends.com

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