Shrinkflation12 May 2021 10:42
We all know inflation is bad for our pockets, your money buys less product, but manufactures have a clever way of hiding the inflation, it’s called “shrinkflation” and it’s historically the first port of call before inflation, they shrink the products weight but charge the same for the product, so your bottle of ketchup shrinks it’s contents by 10% and the price stays the same, but that’s a 10% price hike that you haven’t noticed, this can go on for a while before shrinking the product any more becomes impossible, that’s when prices are forced to increase, and we start to see real inflation, and that’s where gold is your best friend, the perfect hedge for inflation, so keep an eye on your shopping, bet you your already seeing it, but haven’t noticed, it’s the first sign of inflation, as CPI is based on things like your shopping trolley cost, shrinkflation hides the real inflationary pressure, for a while, so the CPI numbers are slow to respond to real time inflation, but the real numbers inevitably come down the road, and gold will follow higher down that road, let’s see what the CPI comes out at today, interesting.