‘Shrinkflation’ hides cost of living hike as grocery items shrink while prices rise

If prices aren’t going up quantities may be going down, with “shrinkflation” the latest cost-of-living issue. GROCERY LIST

Products are shrinking while prices are climbing, according to new data that’s found Queensland in the grip of “shrinkflation”.

A report from money-saving app Frugl has found that some everyday grocery items are decreasing in size as much as 20 per cent, while the price is either staying the same or increasing.

SCROLL DOWN FOR A LIST OF SHRUNKEN GROCERIES

The report found that last year, Arnotts Tina Wafers decreased from 250g to 200g, and Aqua Pura Fruit Splash Tropical Water decreased from 1.25l to 1l, however both items’ prices remained the same at $3.05 and $2.65 respectively.

Meanwhile, Mars chocolate bars decreased from 53g to 47g without a change in price, while Doritos Nacho Cheese Dip reduced from 300g to 280g.

Mars Bars have now reduced to 47g.

The report also highlighted some cases where the products were reduced by up to 17 per cent while the price was actually rising.

In 2020, Jumpys multipack Chicken Chips dropped from a six pack to a five-pack but saw a price hike of 30c.

Both Twisties and Burger Rings packets also reduced their size from 100g to 90g back in March 2020 but now cost $2.20 instead of $2.

Twisties are now at 90g.

Frugl CEO Sean Smith said that based on past events, sizes were not likely to return to what they were, while prices might drop, but not anytime soon.

“These pressures aren’t looking to ease anytime soon and if we look over the past 12 months, the bulk price increases have been in the last quarter. It’s been quite recent because of major events, particularly the war in Ukraine and its impacts on fuel costs,” he said.

Mr Smith said the shrinkflation tactic wasn’t common, but could be used by brands without customers realising.

SCROLL DOWN FOR A LIST OF SHRUNKEN GROCERIES

“Brands have to think about who their customer base is and whether or not they can absorb price increases, or whether a reduction, and generally we’re talking a small reduction, in pack size will have less of an impact on a customer,” Mr Smith said.

Layers of instability adding to rising production costs have had a significant impact on brands, Mr Smith said.

“Furthermore, the war in Ukraine has definitely impacted areas. Major global wheat supply, canning has gone up, there’s pressures from every direction at the moment and we can see the impact of inflation as well,” he said.