Is price inflation being underreported?

29 Aug

I received the following email from Greg H. who heard my interview with Tom Woods.

Good Morning, hope you had a wonderful summer.  I listened to your guest appearance on the Tom Woods show today and I am happy to hear that a professor in New Jersey is teaching students this type of economics.  I do live in New Jersey and we both know how the political and economic arena is here.  I work in the food distribution industry as a procurement manager and I enjoyed hearing your point on shopping and seeing retail have not changed yet sizes have, but this may not be calculated correctly in CPI.  I see this all the time from our vendors, I work with meat and it is more involved learning commodity markets and global markets in general.  So a lot of cut meat to purchase and we work costs by the pound so when a vendor who has a product that is net weight like say a package of 16oz sausage and a vendor says I will keep you unit cost the same, I will argue back that they need to keep the cost per ounce the same.
ex. 16oz package @ $5 unit cost = $.3125oz going to a 14oz package should now be $4.375 unit cost
This is something a lot of customers have caught on to, but have no recourse for it. 

I wanted to reach out to you because I appreciate the people in academia who go against the status quo when educating their students (my brother is a professor at FDU in sports management with a focus on sociology of sports and can create a pretty contentious convo when around each other).  If you ever want to connect and talk about how markets are affecting food prices feel free to reach out to me.  I am always willing to discuss or present to classes as I have at my Alma mater and I think it gives the students a different perspective on the food industry and not what they just read on social media and also the real work environment.  I hope the school year starts off in the right direction.  Thank you for taking the time to read what I wrote.

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