Wednesday, October 15, 2014

Example of Hyperinflation and "Shrinkflation" at Work


I recently found this bus ticket in one of my jackets. This is a minimum fee bus ticket from Buenos Aires back in 2011. Notice that is says "Subsidised by the National Estate". Today, that same minimum fee, one ride ticket paid in cash costs 6 pesos, an inflation of nearly 600% in 3 years.
Also notice how small the bus ticket is. As the economy got worse in Argentina, everything suffered "shrinkflation" so as to cut cost and expenses wherever possible or even hide inflation by making food and other consumable goods in smaller "new" packages and bottles. As months went by, bus tickets kept getting smaller and smaller, up to the point where it was hard to read them for some people.

FerFAL

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