CPI adjusts prices on a per weight or per volume basis. Shrinkflation is definitely captured in the official metrics. The hidden inflation is in the service ind

CPI adjusts prices on a per weight or per volume basis. Shrinkflation is definitely captured in the official metrics. The hidden inflation is in the service industry where it is impossible to capture whether or not your dentist gives you a toothbrush now or not. Or if you get a free smile with your Big Mac. This is what I call skimpflation but I think some people use it interchangeably with shrinkflation. Inflation is also always "constant" in the sense that the government wants to target a constant 2% inflation rate. I think you meant to say "constantly high". Regardless, I agree with your sentiment that inflation is still above the 2% target and may prove to be sticky as incomes need to rise to meet the inflation we saw over the past 3 years. My prediction is that we'll be at 5% rates plus quantitative tightening for at least another full year. If they start doing rate cuts, I think we'll start going above 3% inflation and then the Fed has the tough job of taking the fruit punch bowl away from a market which thinks the party is just getting started. Going into an election year, that becomes politically difficult regardless of what they do.