Hidden Inflation

Hidden Inflation

A reduction in the purchasing power of money that one does not immediately notice because a company maintains the same prices for retail products, but begins to make those products with lower quality materials.
References in periodicals archive ?
Summary: Chief Market Strategist at ADS Securities Nour Al-Hammoury points to the precarious consequences of hidden inflation from five years of QE and remarks on 'worrying similarities' to the experience of the 1970's markets
The stimulus package had created hidden inflation, which was like a pile of tinder dry wood.
Five years of Quantitative Easing by the Fed has created hidden inflation, and the issues now affecting Iraq and the Ukraine could be the spark that starts the fire.
We cannot see the hidden inflation bomb that may be developing.
To absorb this hidden inflation, it is necessary to allow inflation to run wild, but covertly.
The Agency simply replaced value series it suspected were contaminated by hidden inflation with proxy physical series, a procedure that could have been wide of the mark in both directions.
15) It should be noted however that while Bergson resisted the idea that the Soviet capital series he constructed were biased by hidden inflation, and hence that the low combined factor productivity he computed was illusory, he nonetheless tacitly accepted the CIA's hidden inflation adjustment to its civilian and military series by refraining from public criticism.
2000: Soviet industrial production, 1928 to 1955: real growth and hidden inflation.
Constant-quality hidden inflation is a hidden price increase that occurs when producers evade price controls by introducing "new" products with insignificant quality improvements, at higher prices.
Some methods to correct for hidden inflation that are assessed by Gardner include the matched model method, direct quality adjustment, and hedonic analysis.
Unfortunately, even after Tax Freedom Day, Americans will still suffer from the Federal Reserve's regressive and hidden inflation tax, which erodes their purchasing power for the benefit of big banks and big-spending politicians.