Shrinkflation

Shrinkflation is a hybrid term that combines “to shrink” with “inflation”. The trick is to keep prices at the same level for a product, but to reduce the weight or amount sold at a constant price. The intention of producers is to indirectly increase prices without touching at price tickets on products. As consumer you are likely to remember the price tag of a product, but much less the unit costs. However, the unit price is the basis for fair comparisons. In supermarkets there is an obligation to print also unit prices (€/kg or €/L) next to price labels. Comparisons allow information irrespective of package size. In shrinkflation the higher unit costs of a product will drive the official measure of inflation (Destatis, 2024). In Germany inflation for food had the top inflation rate in 2023, surpassing even price rises for energy.
On the one hand, shrinkflation is cheating on consumers to sell them less for the same price. On the other hand, oversized products that solicit higher consumption are part of the health and environmental problems we face. The obesity pandemic is part of the XXL consumption hype the food industry and supermarkets have created. In this respect, more expensive food (Eurostat info) potentially may trigger the rethinking of consumption and nutrition. “Eating better instead of less” has always been more expensive.
Besides the profit-maximising logic of shrinkflation, there is at least a small hope that behavioural changes might be triggered to consume less, to use less detergent in washing, less sugar drinks, smaller size pizza and so on. Shrinking our food intake is part of the solution for many problems. In the end cutting out most convenience food will save you a lot of money. As a side effect of such behavioural changes, eventually prices are likely to come down some time later again.