EPISODE · Jul 11, 2024 · 2 MIN
Shrinkflation
from Die ekonomie minuut · host Waldo Krugell
Consumers are sensitive to price increases and quickly notice if their shopping basket costs more, but they don't notice a difference in weight or volume as quickly. When the inflation rate is high, companies would rather offer less in smaller packaging than raise prices. I've talked before about dog biscuits but only saw this week that my favourite brand of peanuts and raisins is now in 450-gram packets. This is so-called shrinkflation, but it is not the end of the story. This episode is supported by the NWU Business School.
What this episode covers
Consumers are sensitive to price increases and quickly notice if their shopping basket costs more, but they don't notice a difference in weight or volume as quickly. When the inflation rate is high, companies would rather offer less in smaller packaging than raise prices. I've talked before about dog biscuits but only saw this week that my favourite brand of peanuts and raisins is now in 450-gram packets. This is so-called shrinkflation, but it is not the end of the story. This episode is supported by the NWU Business School.
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Shrinkflation
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