That shrinking feeling

Companies have used inflation as an excuse to trim sizes and cut quality. Economists, ever slower than shoppers, are aware of the first trick but are still being duped by the second.

“Food sizes are getting smaller, but prices are going up” created by OpenAI DALL•E 2

Inflation is higher than people realise. Consumers and households, already stretched by higher prices and stagnant wages, are getting less bang for their buck as food companies cut the size and quality of their products. Standard inflation measures catch the first move b…