How does 8% inflation correlate with the 30-50% increase in the price of products also accounting for shrinkflation?

Question

Edit: thanks to everyone especially those of you that have really detailed answers. I’ve learned a lot .

In: 448

Answer 1

The basket of goods looks at fixed quantities of product, ie. a gallon of milk year-over-year, not “medium size” peanut butter without accounting that jar is now 14.5oz. instead of 16oz.