one thing that wonder about is what if we're not seeing inflation show up in many goods categories because of retail menu costs, but that is starting to change, and in a month or three inflation stats maybe look very differenthttps://twitter.com/sgodofsk/status/1450657636161134592 …
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if this is a multi year thing and the response by retailers is to keep prices the same but reduce portions, will that be reflected in the inflation numbers?
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in an "ideal" index this would be accounted for but im not sure whether it would be caught in practice
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The flip side to this is that the indices would also overstate inflation. Companies that find it costly to increase prices would increase them more than necessary to avoid having to do it again in the near future.
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hmmm perhaps! maybe more sticky in one direction who knows (i do not)
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