Dear MEL Topic Readers,
'Shrinkflation' isn't a trend – it's a permanent hit to your wallet
Do you always pay attention to the quantity of the product you buy regularly?
For example, if the price of your favorite 12-pack candy bar increases by 10%,
you’ll most likely notice the price hike. But if the same product becomes a 10-pack
at the same price, you may not realize the shrinkage right away. Then, which do
you feel is more painful or tolerable, a 10% rise in price or a 10% reduction
in quantity for the same product? As inflation becomes rampant, consumers
become more sensitive to price increases and budget-conscious. So, some manufacturers
are shrinking packages to keep the price, instead of or in addition to raising
the price. Some call it Shrink-flation. While prices could fluctuate depending
on the market and competition, the package size or per-package quantities don’t
change so often. So, once downsized, it usually doesn’t rebound easily unless
it is repackaged with “jumbo” or “now only” labels at a higher price. Indeed, Shrink-flation
helps our budget in the short term but not in the long term.
Enjoy reading the article and learning about this new type of inflation.
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