Stealth Inflation Example

Inflation does not always show up in higher prices for the things you buy but often shows up in lower quantities for the same prior price.

Check out the paper towel quantity difference between these two rolls.

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Now, this guy circled the wrong thing but compare the square footage of each roll. The prior roll included 85 square feet of paper towel while the new one included just 74 square feet. So, in order to get the same quantity as before, you need to buy 14.9% more (i.e. 85 / 74 – 1 = 14.9%)!

If the cost was previously $1.67 per roll, and the new smaller rolls cost the same amount, the equivalent quantity today would cost $1.92 or 15% more! That’s a very SIGNIFICANT inflation rate especially considering this inflation is not solely impacting paper towel but likely many of the goods we buy on a daily basis.