Abigail with attitude: Expanding on ‘shrinkflation’

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Abigail with attitude: Expanding on ‘shrinkflation’

As regular readers might remember, I have long been worried about the inflationary impact of the extraordinary zero interest-rate policy which central banks have foisted on us.

So I am looking forward to reading a new book by Pippa Malmgren called ‘Signals: the breakdown of the social contract and the rise of geopolitics’.

Malmgren, a former adviser to President George W Bush, discusses what she calls ‘shrinkflation’, the phenomenon of charging consumers more for the same amount or less – for example, Cadbury might reduce the size of a bar of chocolate but keep the retail price the same.

I suspect that once the inflation genie is out the bottle, the authorities will struggle to stuff the ogre back in. I could be wrong. I have certainly been wrong before. But let’s see what the autumn brings. Will market participants, whom I would argue have been in deep denial, pile in to precious metals and commodities as a hedge against geopolitical risk and stirring inflation?

How was your month? Please send news and views to Abigail@euromoney.com.



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