The scourge of “stealthflation”
Companies have found sneaky ways to raise prices. Where will it end?
By Leo Mirani
THERE IS, AS economists like to say, no such thing as a free lunch. Buy your lunch in a branch of McDonald’s, however, and you may find there is no such thing as free relish, either. Outlets in some countries now charge for ketchup and other condiments. Yet McDonald’s is not alone in hitting customers with unexpected charges. Amid a surge of inflation, firms have found several stealthy ways to raise prices. Could 2024 mark a turning-point in this invidious trend?
A classic example is the technique of “unbundling”, a ruse pioneered by low-cost airlines. Long ago they began charging extra fees for things that used to be included, such as in-flight food and checked luggage. Then came charges for seat selection, or for any cabin bag larger than a sock stuffed with spare underwear.
This article appeared in the Leaders section of the print edition of The World Ahead 2024 under the headline “The scourge of “stealthflation””
