Value Deflation

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Dictionary Says

Definition of 'Value Deflation'

When companies cut their costs without increasing prices for consumers. Value deflation occurs when retailers and service providers give out smaller portions, fewer services and generally provide less for the same price.

This is also referred to as "shadow inflation."
Investopedia Says

Investopedia explains 'Value Deflation'

Examples of value deflation include reductions in the amount of food in a typical package such as a juice box or bag of potato chips, reduced portion sizes at restaurants, and curtailed cleaning and concierge services at hotels. Of course, all of these businesses continue to charge the same price despite the reduction in products or services. This method is an alternative to raising prices that the consumer is less likely to notice.
Search results for

'Value Deflation'

  • Protect Your Portfolio Against Inflation And Deflation

    http://www.investopedia.com/articles/basics/11/guarding-against-inflation-deflation.asp
    ... against deflation). High-quality bonds and TIPS are reasonable choices on the
    fixed-income side. With TIPs, you are guaranteed to at least get value of your ...

  • The Dangers Of Deflation - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0311/The-Dangers-Of-Deflation.aspx
    ... there has been a continuing debate on how best to combat recessions and deflation. ...
    in to paying off a loan with money that is increasing in value every day. ...

  • The Upside Of Deflation

    http://www.investopedia.com/articles/economics/09/upside-or-deflation.asp
    ... below actual value. For this reason, the Federal Reserve Board wages a constant
    battle against inflation using monetary policy, with the fear of deflation in ...

  • 8 Ways To Lose Money On Bonds Slideshow | Investopedia

    http://www.investopedia.com/slide-show/lose-money-bonds/treasury-protected-securities-deflation.aspx
    ... the way values on TIPS are calculated, an extended period of deflation could return ...
    methods of calculating CPI could result in a reduction in your TIPS' value. ...

  • Do Deflationary Shocks Help Or Hurt The Economy?

    http://www.investopedia.com/articles/economics/09/deflationary-shocks-economy.asp
    ... by deflation; Do careful planning on the production of goods and services and inventory
    reduction; Investment planning should focus on higher value goods or ...

  • 7 Tools For Rebuilding Retirement Savings

    http://www.investopedia.com/articles/retirement/09/7-vehicles-to-rebuild-retirement.asp
    ... (Learn more in What does deflation mean to investors?); TIPs ETFs ... Stable Value Funds
    Stable value funds are considered safe options when the market is volatile. ...

  • Hedge Your Bets With Inflation-Linked Bonds

    http://www.investopedia.com/articles/bonds/09/inflation-linked-bonds.asp
    ... Market Trends.) In addition, TIPS, I-Bonds and many of their global inflation-linked
    counterparts do not have much value protection during times of deflation. ...

  • The Lost Decade: Lessons From Japan's Real Estate Crisis

    http://www.investopedia.com/articles/economics/08/japan-1990s-credit-crunch-liquidity-trap.asp
    ... rate of return by investing, they believe deflation is on the horizon (cash will
    increase in value relative to fixed assets) or deflation already exists. ...

  • Looking At The Long Bonds

    http://stocks.investopedia.com/stock-analysis/2010/Looking-At-The-Long-Bonds-TLT-VCLT-MLN-EDV-ZROZ0816.aspx
    ... and zero-coupon bonds are another way to plan against deflation. These bonds are
    fixed income securities sold at a significant discount to face value and offer ...

  • Top 8 Ways Lose Money On Bonds

    http://www.investopedia.com/articles/bonds/08/lose-money-bonds-losses.asp
    ... (To learn more about deflation, read What does deflation mean to investors ... are regularly
    being tested and promoted to result in a reduction in your TIPS' value. ...

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