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Consumers Experience Smaller Packaging & Higher Prices Thanks To 'Shrinkflation'

You may have heard of inflation, but what about ‘shrinkflation’? If it’s not one thing it’s another. This time it’s a phenomenon called ‘shrinkflation’ where consumers pay the same price for less when it comes to buying goods. According to CBS News , this is not a new trick, this practice plays a role during periods of rising inflation or economic downturns. One of the results of the COVID-19 pandemic placed cost pressures on a number of industries along with their products thanks to various reasons which include difficulty in hiring workers, trucking shortages, and price increases for raw materials. “If you are a manufacturer or retailer, you have a couple of choices — you can keep prices the same, which means you have lower margins. Second, you can run fewer promotions, and that definitely happened in the last year,” said Anne-Marie Roerink, the founder of market research firm 210 Analytics. “And the third measure is to keep prices the same but have a little less in the box.”...

Shanique Yates

Jun 5, 2021