Thursday, February 14, 2013

Stealth Inflation

Although officially inflation has been under 2%, in reality it's higher.  Food and energy is not included in "core" inflation: after all, who needs those things!  Also, cheaper goods are routinely substituted for more expensive ones in the official basket of goods used to track inflation.

Instead of increasing prices, producers reduce the amounts (by changing to metric units, for example)

Now horse meat is being sold as beef in Europe.

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