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August 11, 2008

The Hidden Inflation Sapping Our Purchasing Power

I often purchase Colombo sourdough sandwich rolls to make my daughter's favorite pizza bread. I was pleased to see them on sale at Safeway today. When I got home and started fixing dinner I wasn't as pleased. I noticed the rolls are significantly smaller than they used to be. Coincidentally the Wall Street Journal just reported today about food companies lowering the volume of food they sell while keeping the price the same. Get it?

This is inflation the government is not able to measure. It's insidious really. Kellogs has admitted to reducing some of their packages. General Mills admitted to reducing the size of the standard box of Cheerios while keeping the price the same. Nothing cheerful there.

I recommend you protect yourself by being wise to tactics like this. In the skies airlines are being very overt about charging extra for this and that. You're mad but at least you're seeing it and are able to shift your spending if you're not in agreement. It's when the company doesn't tell you what they're doing that your purchasing power is secretly weakened. You're paying more and don't even know it. Shop with both eyes wide open is all I can say today.

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