Money

‘Shrinkflation’ takes hold across the U.S. economy

Published

2 years ago

February 5, 2024

Amid the backdrop of a flourishing U.S. economy, characterised by rising stock prices, job growth, and falling inflation rates, a peculiar phenomenon is troubling many Americans: “shrinkflation.”

This term refers to the practice of maintaining product prices while reducing the quantity or quality of the item, and it is becoming increasingly prevalent in various sectors, both online and offline.

However, the Consumer Price Index fails to account for this subtle shift in the economic landscape.

Shrinkflation is not limited to just the grocery aisle – it has permeated nearly every facet of consumer life.

Less value

While Americans may still be paying similar prices as they did a year ago, they often receive less value for their money.

One example of this can be seen in airline fares, which the Labor Department’s consumer-price index reported as having fallen by 9.4% in 2023.

However, this seemingly positive figure masks a more complex reality.

The calculation heavily relies on the “lowest available fare,” typically offered by budget airlines.

These airlines often require passengers to pay extra fees for services that were previously included in the ticket price, such as carry-on baggage and seat selection.

More for services

Consequently, flyers find themselves with less legroom and even face additional charges for beverages or snacks.

While some may appreciate the flexibility of differentiated pricing, many consumers are disheartened by paying more for services they once received as part of the base ticket cost.

Enjoying these “low” fares may be short-lived, as airline labor costs are on the rise due to newly negotiated pilot union contracts. Even low-cost carriers, traditionally known for their budget-friendly offerings, are grappling with financial losses.

In this new environment of normalized interest rates, businesses are compelled to prioritize profitability, inevitably leading to higher prices for consumers.

Money

Wall Street gains momentum amid tech and earnings surge

U.S. stocks rose Monday, driven by Oracle gains, as investors overlooked recent silver and bitcoin losses ahead of earnings week.

Published

3 hours ago

February 3, 2026

Harvey Vargas

U.S. stocks rose Monday, driven by Oracle gains, as investors overlooked recent silver and bitcoin losses ahead of earnings week.

U.S. equities climbed on Monday as Wall Street kicked off a new month of trading. Investors looked past recent losses in silver and bitcoin, with optimism returning to major indices. The S&P 500 rose 0.7%, led by gains in Oracle shares following the company’s announcement to raise up to £50 billion for cloud capacity.

The Dow Jones Industrial Average surged 501 points, while the Nasdaq Composite increased 0.9%. Analysts note that the broader market is showing resilience despite mixed signals from tech and commodities.

More than 100 S&P 500 companies are expected to report earnings this week. Strong growth is predicted, even as some high-profile sell-offs continue to make headlines.

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Money

U.S. dollar weakens while Australian dollar rises amid global market shifts

Published

4 days ago

January 30, 2026

Harvey Vargas

US dollar weakens as Trump comments; Australian dollar gains from commodity prices and RBA rate hike expectations

The US dollar is coming under pressure as the economy remains strong and President Trump comments on its decline. We explore how this is impacting major currencies around the world and what it means for investors.

Meanwhile, the Australian dollar is benefiting from rising commodity prices and growing expectations of an RBA rate hike. Global investors are increasingly drawn to Australia’s bond market as economic conditions shift.

Currency trading strategies are adapting to this changing landscape, with potential implications for interest rates and international markets. Steve Gopalan from SkandaFX breaks down the trends.

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#USDDollar #AustralianDollar #ForexTrading #RBA #InterestRates #GlobalEconomy #CurrencyMarket #Ticker

Money

Wall Street slides as AI spending raises investor concerns

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives. Tune in for insights!

Published

4 days ago

January 30, 2026

Harvey Vargas

Wall Street dips as AI spending scrutiny rises; Microsoft struggles while Meta thrives.

Wall Street closed lower on Thursday, with the Nasdaq leading losses as investors questioned whether Big Tech’s massive AI spending will pay off. Microsoft shares tumbled after revealing record AI infrastructure costs, while Meta rallied on strong earnings and a bullish outlook.

Kyle Rodda from Capital.com joins us to explain what spooked markets, which tech names are holding up, and whether AI budgets are getting too big.

We also discuss rate expectations, macro risks, and what to watch in the upcoming earnings season.

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