kurogane wrote:Aha! Even from reading The Economist I can never quite get my head around that one, but I get that there is more to it than the money grubbing skullduggery of rapacious capitalist parasites. Is that one of those ones where costs constantly and unavoidably increase even in the midst of broader general deflation or stagnation?
You have an economy where prices are not known to rise. And when they do, such as in the case of popular national frozen snack "Gari-Gari kun" makes national headlines. Your raw material costs are however rising due to vagaries in the exchange rate and interglobal commodity markets. However your competitors have not blinked and jumped the price rise shark. Do you a) jump, or b) downsize your packaging?
That's my theory anyway.
