Hello everybody and thank you for tuning into the weekly report.

And the Fed and get more Dorito.

The government's consumer price index indicates prices have increased 7.9% in the last year.

While this statistic shows the highest rate of increase in 40 years, it still understands

the amount of prices have actually increased in part because the statistic is manipulated

to minimize reported price increases.

A stealth form of inflation is shrink inflation.

Shrinkflation occurs when businesses reduce the size of a product so its price can stay the

same.

For example, Frito Lay recently began putting fewer chips in a bag over Doritos.

Using the weight of a bag about 5% from 9.75 ounces to 9.25 ounces in the process.

Of course, charging the same for less is a type of price increase.

This week the Federal Reserve increased the interest rates by 0.25%.

This increase it said is a step in combating inflation.

The Fed is also announcing that it plans to raise rates 6 more times this year.

However, even if the Fed follows through on this plan, rates will only increase from near

0 to around 1.9%.

This is unlikely to effectively combat inflation.

The Fed also indicated a commitment to reducing its almost $9 trillion balance sheet, although

its official statement did not specify details such as when the Federal Reserve would start

reducing holding.

The Federal Reserve is facing a dilemma of its own making.

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