3 ms·
Isn’t this because people notice the categories that have increased more? And that a lot of the categories that increased the most, like fast food, are proporti
by opportune 3y ago
Isn’t this because people notice the categories that have increased more? And that a lot of the categories that increased the most, like fast food, are proportionately small categories of consumption spending and thus weighted less?
Also, a lot of companies have introduced more complicated price discrimination tactics in the past years which can make inflation seem higher than it actually is. Fast food for example, has essentially three tiers of pricing: instore with app coupon pricing, in store sticker price, and delivery/doordash price. Similarly many services use anchoring with high priced for short term contracts to push you towards longer term contracts with more reasonable pricing - they market it as locking in a discount, but they don’t expect you to take the short term contract because it’s a bad value, it’s a way to enhance the perceived value of the expected SKU.
At least for me, my personal spending has grown just about in tandem with official inflation, maybe even less. Where is your evidence that increase in the sticker price of the cheapest things on Taco Bell’s menu reflects a much higher actual rate of inflation?