The 'Inflation Illusion' Still Haunts the Economy

By Sean Michael Cummings

Cookie Monster says the dollar is losing its buying power...

Last week, the Sesame Street character's official account on X (formerly Twitter) issued the following viral posts...

By "shrinkflation," the Muppet is referring to a dreaded economic trend...

Companies "shrink" the size or weight of a product while keeping the price the same. The cost per unit is then inflated.

This boosts profits... stiffs consumers... and ultimately debases the value of currency.

Obviously, Cookie Monster isn't an economist. But his tweet carries some ominous economic subtext: Inflation still isn't under control.