Shrinkflation
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In economics, shrinkflation is the process of items shrinking in size or quantity while their prices remain the same.[1]
Economic definition
Shrinkflation is a rise in the general price level of goods per unit weight or size, with a corresponding reduction in the weight or size of the item sold.[2] Hence the price of the product remains the same. This does not affect inflation measures such as the consumer price index or Retail Price Index, because there is no increase in the cost of a basket of retail goods and services.
Examples of shrinkflation
- In 2009 Mars reduced the size of their Mars bar from 62.5 grams to 58 grams, while the price remained at 37p.[3]
- In 2010 Cadbury reduced its 200 g Toblerone bar to 170 g.[4]
- Tetley tea bags were sold in boxes of 88 instead of 100.[4]
- Nestlé reduced its After Eight Mint Chocolate Thins box from 200 g to 170 g.[4]
- Cadbury's Crunchie were sold in packs of three instead of four.[4]
- In 2013 Cereal Partners sold Shredded Wheat Superfruity for £2.68 at Sainsbury's; was put on £2 special offer, before returning to £2.68, but with less cereal in each box.[3]
See also
Notes
- ↑ "The scourge of Shrinkflation eats away at the man in the street like a cancer!". Perpetual Traveller Overseas. Retrieved 2014-06-08.
- ↑ "'Why do it unless it is to make more money out of us?': Products are getting smaller while the price you pay stays the same". Associated Newspapers Limited. Retrieved 18 May 2014.
- ↑ 3.0 3.1 "That shrinking feeling - how Golden Wonder made me a victim of shrinkflation". Mail Online. Retrieved 2014-06-09.
- ↑ 4.0 4.1 4.2 4.3 "VAT rises but food shrinks". Daily Mirror. Retrieved 2014-06-09.