- ORIGINAL NEWS
What is shrinkflation? Here’s why consumers may be getting less for their money
- SUMMARY
Shrinkflation, a growing trend, is where companies reduce the size or quantity of their products while keeping or even raising prices.
This practice has caught the attention of President Biden and even Cookie Monster, who have both spoken out against it.
While some companies deny allegations of shrinkflation, certain categories of products have seen significant reductions, such as household paper products (10.3% increase due to shrinkflation), snacks (9.8%), and coffee (7.2%).
Consumers can combat shrinkflation by being vigilant and checking product weights and sizes.
They can also compare brands and stores for better deals.
Additionally, online grocery shopping may help reduce impulse purchases and save money.
While shrinkflation is not a major contributor to overall inflation, it does affect consumers’ spending and perception of value.
It underscores the need for careful shopping habits and creative strategies to manage household budgets.
President Biden has proposed legislation to give the Federal Trade Commission power to regulate and penalize companies engaging in shrinkflation.
However, some economists question if this is the most pressing issue in the face of ongoing inflation concerns.
- NEWS SENTIMENT CHECK
- Overall sentiment:
negative
Positive
“One legislative proposal aims to curb the practice of downsizing consumer products.”
“Certain products tend to be more susceptible to charges of shrinkflation, according to Bureau of Labor Statistics data cited in a recent Senate report.”
Negative
“President Joe Biden took companies to task for shrinking sports drinks and ice cream cartons and providing fewer chips in snack bags, in a pre-Super Bowl video posted on social media.”
“The president has called for a bill to be passed that would give the Federal Trade Commission the authority to put regulations into effect to curb shrinkflation.”