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Consumer Price Index

Have you noticed how grocery prices have jumped up recently? Your average 2 liter soda went from .99-1.09 to 1.39-1.59. New 1.5 liter soda bottles are now being offered in the $1 price point. Manufactures are afraid of losing market share if people perceive that prices are going up, so they will slightly reduce the size of the product. For example, typical bags of potato chips have been reduced from 5 oz to 3 oz for the same price.

Some things just don’t make sense. I happen to like Shredded Wheat. The full size is like 16 oz for like $5. The mini Shredded Wheat is like about $4.79 for 15 oz. However, the frosted mini Shredded Wheat version is $2.79 for 19 oz. Triscuits, essentially the same product as Shredded Wheat, is about $3 for 12 oz. Go figure.

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