Inflation

So I stop off at my favourite Vietnamese bakery on the way into work this morning, planning on grabbing one of their sultana muffins.

I request the muffin, count out the $1.40 from my wallet, and the lady responds "That will be $1.95 thanks".

"Huh?"

"$1.95. Prices go up today."

So I stepped back, took a look at the cabinet, and sure enough, prices had gone up. And not the usual amount of 10% or so. Choc donuts - were $1.60, now $2.40. Basically everything had gone up by 50%. It was like someone had told her how much baked goods were currently selling for, and she was unaware as she's spent every day for the past ten years in her little shop from 7am-5.30pm.

The thing she probably doesn't realise is her wares really aren't all that nice. The low price is a key selling point. If she's going to charge the same as everyone else, I may as well go elsewhere. And I probably will.