Inflation And Product Shrinkage - The Subtle Way Of Paying More For Less

Peter at Bayou Renaissance Man has a rather sobering post up about inflation - complete with the mind-boggling fact that 40% of all dollars in existence were produced in the last year alone.

40 percent.

That which can't go on forever, won't.  

The amazing question is how are we not facing massive inflation after all these dollars have been injected into the economy in such a short time?  

We're being told that inflation is a measly and practically non-existent 1.4%

How can this be?

Some of it is demand destruction preventing inflation - locking down the economy over the past year certainly slowed the velocity of money by quite a bit and chilled if not froze out the economy almost completely.  

Some of it is the money being invested into the stock market where it's raising the price of stocks by leaps and bounds and likely creating an asset bubble, and in other investments, but not entering the real world of shops and everyday prices.

Yet, in other ways inflation is already here and eating into our savings and raising prices - but in an insidious manner.  Instead of paying more for the same, you'll now pay more for less - and you'll either not be told of the switch - or be told it's good for you and the environment.

Yahoo News: Coca-Cola Debuts New Bottle Size, Recycled Packaging Strategy

The Atlanta-based company's new 13.2 ounce bottle will be introduced this month for the Coca-Cola Trademark line . . .with a nationwide rollout by the end of 2022.

The new 13.2 oz. bottle is smaller than the retail staple 20 oz. bottle and slightly larger than the 12 oz. aluminum can used by the company. In a press statement, Coca-Cola said the new bottle is "a more sippable package and reduces the use of new plastic."

Expect it to replace the 20oz in the name of reduced packaging and the environment, and I'd wager you'll pay close to, if not the same as what the 20oz bottle was going for now when you buy the 13.2 oz bottle - a third less in size for what I expect will be 20oz prices within the next year - an inflation rate as far as Coca-Cola goes that far exceeds the official 1.4% rate.

Coca-Cola isn't the only company reducing the size of its products while maintaining prices and you can expect even more of these reductions, sold as environmental awareness rather than the raising of prices, in the near future.