Shrinkflation: the shrinking-weight trick fools no one anymore

Shrinkflation cuts package sizes while keeping prices unchanged. A cheese went from 1 kg to 900 g at the same price. It's hidden inflation that never shows up in the CPI.

English · Original discussion in Spanish · Published

Corporate shrinkflation: the art of charging the same for less

A cheese that used to weigh one kilo is now sold in a 900-gram package at the same price. It's not a labeling error or a format change: it's shrinkflation in its purest form, the silent practice of reducing the amount of product while keeping the price. A shopper spotted it in the deli section, but the trick is nothing new: pizzas have been cutting back on toppings for years without touching the price tag, and packaged ham slices have become so thin they're hard to separate intact.

An inflation that doesn't show up in the CPI

While Spain's statistics institute (INE) measures price increases, companies play with package weights. Reducing weight or volume —without changing the price— is a form of hidden inflation that never shows up in official statistics. Consumers pay the same but take less product home. Shrinkflation isn't a Mercadona invention, though the Valencian chain practices it regularly: cheeses, yogurts that go from 4-packs to 6-packs without a discount, or those coveted beers that grow in size but not in price —here it's the other way around, but just as sneaky.

The consumer's response: switch supermarkets or habits

Some have already taken note. If Hacendado, Mercadona's store brand, raises prices or cuts quantities, Lidl gains trinc. Others use trial and error: trying second-tier brands so they don't feel cheated. But the real problem is the lack of transparency: a product reduction is never announced, it's hidden in the fine print. The surprising fact: this practice isn't new. Back in the Simago days, store-brand condensed milk was sold in cans just millimeters smaller than the original, just enough to make the price work. Companies have been perfecting the art for decades.

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Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (17 replies).

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