Shrinkflation

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In economics, shrinkflation is the process of items shrinking in size or quantity while their prices remain the same.[1]

Economic definition[edit]

Shrinkflation is a rise in the general price level of goods per unit weight or size, with a corresponding reduction in the weight or size of the item sold.[2] Hence the price of the product remains the same. This does not effect inflation measures such as the consumer price index or Retail Price Index, because there is no increase in the cost of a basket of retail goods and services.

Examples of shrinkflation[edit]

  • In 2009 Mars reduced the size of their Mars bar from 62.5g to 58g, while the price remained at 37p.[3]
  • In 2010 Cadbury reduced its 200g Toblerone bar to 170g.[4]
  • Tetley tea bags were be sold in boxes of 88 instead of 100.[4]
  • Nestlé reduced its After Eight Mint Chocolate Thins box from 200g to 170g.[4]
  • Cadbury's Crunchie were sold in packs of three instead of four.[4]
  • In 2013 Cereal Partners sold Shredded Wheat Superfruity for £2.68 at Sainsbury's was put on £2 special offer, before returning to £2.68, but with less cereal in each box.[3]

See also[edit]

Notes[edit]