The prices continue to go up at the grocery store, and this means a few different things for shoppers. If you want to learn what shrinkflation is and how you can avoid it, keep reading below.
Price Increases
According to the Consumer Price Index, food prices are up almost 11% compared to last year. This is the biggest increase in a 12-month period since 1980, according to the Bureau of Labor Statistics. Manufacturers are also feeling the effects of inflation, too. The cost of ingredients are going up and supply chain backlogs are making it tougher for stores to keep their shelves stocked. But instead of just raising prices, some manufacturers are taking different measures.
What Is Shrinkflation
Shrinkflation is when manufacturers shrink the serving size of their products. This is in response to inflation. Rather than just raising the price of their products, some companies prefer to reduce the size of their packaging. Shoppers all over the country have noted that the product size of toilet paper, potato chips, and other food and paper products have decreased in size. Shrinkflation results in the every day products you buy being smaller in serving size.
Some economic analysts say that consumers may not notice a price increase if it comes in the form of shrinkflation. Studies have shown that consumers react much more negatively to price increases than reduction in product size. Even small changes to the packaging and design of popular brand-name products are effective. Little things like adding creases to the bottom of a package or advertising “lower calories” are signs of shrinkflation.
What The Law Says
Shrinkflation is a legal practice, as long as the product serving sizes are labeled clearly and there is no unfair or deceptive practices. Companies are free to change the prices of their product. Shrinking the serving size has been proven to be less disruptive to shoppers’ overall experience.
What Products Are Shrinking
Consumers have reported a shrinking in product size across a bunch of everyday items. Huggies’ baby diapers, Cascade dishwashing pods, and other dishwashing liquid products have reduced in serving size. Other popular products that have affected by shrinkflation are toilet paper, paper towels, shampoo and conditioner. Food items like chips, cookies, and crackers have all been reported to come in smaller packaging as well.
Tighten The Belt
Now that you know about shrinkflation you can use this information to be a smarter consumer. Look out for different products at the grocery store and try doing price comparisons. This way you don’t lose out against shrinkflation.
