Stealth Inflation Caught in the Wild
Here is a classic example of how stealth inflation works.
The product is salsa for sale at Walmart. The old jar at the top is 16 oz while the new jar is 15.2 oz, a difference of roughly 5%.
Note how Walmart is advertising it as “new” in a different section away a few feet down from where it sells the old product for the exact same price. Normally Walmart doesn’t waste the effort moving the new size away from the older, larger size, but it has provided a section for the producer containing other of their products.
5% less salsa for the same price won’t kill anyone, but it is an example of how producers are hiding inflation from consumers, and how consumers pay more for products without realizing it. The company passes along increased prices to the consumer while maintaining market share that could be lost to brands that do not raise their prices. A buyer might notice a $.10 jump in the $2 price of salsa, but he may not notice when he receives $.10 less product. Hence the stealth designation.
Pretty clever, huh?
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