[Eli5] how come the inflation level isn’t going up in the US, if the government literally gave everyone like 1000 dollars 3 times?

Question

From what I know, the government can make cash out of thin air, but this causes inflation levels to rise. Or is everything they’re giving out just their surplus?

In: Economics

Answer 1

Some of the inflation we are having is hidden by a process called “shrinkflation.” Less product for the same unit price. Like a box of facial tissues that had 120 tissues for $1.00. The box now costs $1.02 which makes it look like inflation has gone up only 2%. But the box has 110 tissues now.