Shadow Inflation Could Be A Bigger Problem Than You Realize

Shadow Inflation Could Be A Bigger Problem Than You Realize

Shadow inflation is here. But what is it? But did you realize there's another form of inflation that's just as corrosive and yet is nearly impossible to measure? Some economists call it "shadow inflation," and it refers to instances when you pay the same price for a good or service one year to the next, but the quality or quantity has diminished. Many companies, faced with paying higher prices for materials, labor and transportation, pass some or all of the extra costs on to customers. Others opt to charge the same as before but cut back on certain things. Ever feel like you're being gypped on potato chips in the bag you just bought? Or that your hotel room isn't cleaned as well or as frequently as you once remembered? It could just be poor customer service. Or it could be shadow inflation. Shadow inflation is yet another indication that the traditional consumer price index (CPI), as provided by the U. S. Bureau of Labor Statistics (BLS), isn't telling you the full story. Last year, I suggested the CPI might be fake news. I would also describe it as FUD, or fear, uncertainty and doubt. Last week the BLS reported