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 ?
Describing the MPC as a truly revolutionary step, he said we got used to decades of moderate to high inflation, leading to industrialists and governments paying negative real interest rates and the burden of the hidden inflation tax falling on the middle class saver and the poor.
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.
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.
While the official Soviet data do show a rise in growth rates in that plan period, there is considerable dispute among economists as to the reliability of the official data because they do not take into account a hidden inflation factor.
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.