Shrinkflation: companies raise the price of their products but reduce the size of their packaging
Experts estimate that this practice will affect more products, including diapers, as companies face higher costs.
Photo: Tim Boyle / Getty Images
One of the ways in which companies are raising prices is by reducing the size of packages without lowering the cost, what is known as “shrinkflation”.
It is a kind of camouflage in the retail. Economists and consumer advocates who track product packaging predict that the measure will become more common as inflation rises and affect commonly used products such as paper towels, potato chips and diapers .
Analysts estimate that this practice will affect more products as companies face higher costs as a result of supply constraints and logistics caused by the coronavirus pandemic.
The companies are among a number of manufacturers and retailers that not may or may not want to absorb the higher manufacturing costs .
Who is detecting the phenomenon called Shrinkflation?
This practice is identified by consumers themselves when they find a Less sachet of M & Ms in a multipack envelope, in towels that are smaller from Scott Shop or smaller packages of Cheerios.
Companies like Kimberly- Clark, Scotts Miracle-Gro, Procter & Gamble and General Mills have confirmed to the newspaper The Washington Post that prices will rise by 4-9% this year, but it is not yet clear to what extent they will do so in the form of shrinkflation.
The site Mouseprint , led by a former assistant Massachusetts attorney general, posted photos in May of two bags of Doritos that look identical but are half an ounce difference .
The companies have not disclosed how much of their Products have reduced the size of their packages this year. However, it is expected that trends and prices will tend to continue .
Full-year inflation expectations are at their highest levels since 2013 , which according to the Federal Reserve, is largely Due to the limitations of the offer.
