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Up to 75% hidden inflation through stealth price rises
Real inflation combines taxes, fees, shrinkflation and falling quality: up to 75% hidden in a single year. An analysis of the levies that make everything more expensive while official CPI stays low.
The inflation they don't count: tax rises, falling quality and 'shopping optimisation'
How much has your shopping basket really gone up if you add new taxes, fees and reduced quality? The past year has brought a cascade of measures that, according to the most critical analyses, have made everything between 20 and 25% more expensive through direct levies alone: the so-called 'AliExpress tax' hitting online shopping, the packaging deposit scheme that promises refunds after endless queues, and an extra 20% on hospitality. All of this while the official CPI remains glossed over.
The three pillars of the hidden rise
The first is the levy on online sales platforms, which makes any imported product more expensive - from electronics to clothing - by up to 25%. The second is the packaging deposit: you pay 20% more for every bottle or can, but the State 'gives it back' if you spend an hour queuing at return points that seem designed to discourage returns. The third is the increase in VAT or direct taxes on hospitality, which already adds another 20% and, through knock-on effects, also drives up retail prices.
But it's not just prices going up: quality is plummeting. 'Shrinkflation' - keeping the price while reducing quantity or quality - is running rampant: worse meat and vegetables, clothes that fall apart at first wear, flimsier packaging, caps that won't come off. All while public sector salaries soar year after year, widening the gap with the private sector.
Those who defend the 'get to work' argument
Against the diagnosis of inflation orchestrated from Brussels, some argue the problem is one of attitude: 'get producing and stop complaining'. According to this view, the solution is to work more and consume less, not to denounce an alleged conspiracy. But even the harshest critics admit that the ECB and European policies are playing a key role in eroding purchasing power.
The World Cup as a mirror
One figure illustrates the scale of the problem: tickets for the football World Cup final - which Spain won - ranged from 3,650 to 9,600 euros for the general public. A price out of reach for someone on an average Spanish salary, but one that shows just how far real inflation has eaten into wages. While some celebrate the title, others wonder whether the confetti is nothing more than a painkiller for the wallet.
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication.
Read the full discussion (14 replies).
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