Discover and read the best of Twitter Threads about #hiddeninflation
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Now that profits (and not wages) have been established as the key driver of inflation, it might be worth thinking of more subtle, non-price, ways in which firms are exploiting “supply disruptions” and “labor shortages” to exercise power over consumers. THREAD
Others have noted that companies are can achieve higher effective prices by reducing the quantity in the package. Another form of #HiddenInflation could take the form of cutting back on services, reducing the quality of the product, and increasing the quality-adjusted price.
Here’s an example travelers know too well: Hotels have cut room cleaning since the pandemic. But hotel rates have continued to skyrocket. On a quality-adjusted basis, inflation in hotel services is even higher than the price-based inflation numbers suggest.
