Like how this Marronibrot seems to be missing Marroni (it is there if you search), or how there’s more room in the bag for Gipfeli to bounce around now.
Need a chart of food deflation in light of price inflation.
Like how this Marronibrot seems to be missing Marroni (it is there if you search), or how there’s more room in the bag for Gipfeli to bounce around now.
Need a chart of food deflation in light of price inflation.
19 comments
A while back we had the Gipfeli comparisons. The other day I saw some food price inflation numbers (put Switzerland at 1.9% iirc). My Wife is a big fan of the Marroni season, and thought the first Marronibrot lacking in Marroni was a fluke. Somehow the second one was set to an even finer grind of the nuts.
So I think, food quality content drops, but prices remain the same, and it looks as if we’re beating inflation, when in reality it’s just exchanged for quality.
Editing in some sources as I spend the last of my break looking for the OC I saw that made me think:
https://blogs.worldbank.org/opendata/food-prices-continued-their-two-year-long-upward-trajectory
https://www.weforum.org/agenda/2022/05/global-food-prices-ukraine/
https://www.icaew.com/insights/viewpoints-on-the-news/2022/may-2022/chart-of-the-week-inflation-around-the-world (close to what I saw)
https://mobile.twitter.com/oecd_stat/status/1557653271157800966 (https://www.oecd.org/sdd/prices-ppp/consumer-prices-oecd-updated-3-august-2022.htm is full release link, but Twitter post has the image)
Shrinkflation. Selling less product for the old price and hoping people won’t notice.
But we still have it good in comparison to other European countries where inflation hit 10-20%.
The same techniques are used in literally any country. All companies everywhere reduce the sizes of their package while keeping price the same, which is an effective way to up-price without making it too noticeable for consumers. Sometimes quality goes down, too.
Also, ALL countries deflate their inflation numbers (pardon the pun). Inflation is calculated in ways that do not necessarily reflect reality. For example, if the price of an item goes up, but there is a cheaper similar item that did not go up in price, inflation does not calculate that as an increase as it is assumed that consumers can switch to the cheaper item.
So while yes it might be disappointing, your piece of bread hardly proves much. Switzerland still has much lower inflation than the rest of Europe and developed world. Especially in food, since the supply chain is relatively independent and a lot of food is actually produced in Switzerland.
In Thailand, like for cat’s food the price is the same but the quantity decrease. For the same price, you have 2,8 kg and before 3 kg. :-), must be the same in swiss.
They’re also wrong, because the price of our weekly shop is gradually going up each month.
**Economists**: “Based on our centuries of collective experience and expertise, we’ve calculated inflation to be x%…”
**OP**: “You’re all wrong, and I’ll prove it, look at this piece of Marronibrot, WHERE ARE MY MARRONIS?”
Inflation calculations do include effects of shrinkflation, quality, changes in lifestyle, consumption patterns, etc.
I tend to compare it more to the famous Hulk quote when answering to the question how is avoiding to get angry “Because i am always angry.” Same for Switzerland when they answer to the question how do you avoid rising prices due to Inflation. “Because my prices are always high.”
Inflation takes into account the quality of products, I’m sure they take into account the weight of products into their calculations. That said, it is a useful fiction, there is no objective measure of the quality of things.
If cars stop having ABS but remain at the same price, is there really no inflation (looking at you Russia) ?
I highly recommend this video for a more detailed explanation of the weaknesses of inflation as a measure and what economists do to counter them (in French) : https://www.youtube.com/watch?v=mxWbFG32_dw
Strong franc is holding down imported food prices
I read through many of the comments here and its clear that each and everyone of you is correct. There are “played down” inflation numbers deliberately kept down, item quality is diminishing and items are shrinking to keep costs down.
All these things also happen in every other country AND they still have 10% inflation. So Switzerland is doing really well in riding out this global shitstorm. I think we are witnessing the major turning point in hard line capitalism and at some point it will have to change or the house or cards will collapse.
Really guys – Marroni is not in the bread like a nut in chunky bits but its made with chestnut flower but since Marroni flower is gluten free you cannot bake bread with 100% but need to mix it with other flowers that contain gluten that acts like a glue.
My grocery bill is roughly 20% higher this year than last when averaged out on a month to month basis. Granted I don’t buy exactly the same thing every month but it’s roughly the same. When gas prices are up as much as they are, and gas is what’s used to transport these goods to grocery stores, it makes sense.
Half a bread?
There IS inflation it’s just much lower than other countries and it’s hidden. They sell less for the same price instead of selling the same quantities for a higher price.
Store brand energy drinks have gone up -.5 to -.10 per can. Its hitting me personally pretty hard
Don’t buy any industrial products, if possible, and you’ll notice the real inflation. In that case, they only decreased quality over price to make it look like it’s not going up while you get less for the same. Shrinkflation 😀
Shrinkflation your labor at work to balance the scales
If only there were some capable statisticians and economists who would measure price inflation of food in kilograms and liters! Oh well. Gotta rely on gut feeling and the neighbors sisters cousin knows inflation is actually more like 25%. Per week!
Nice one!