Consumers face growing shrinkflation as prices increase and package sizes shrink.
- An investigation reveals a significant rise in unit prices at major supermarkets.
- Products like McVitie’s Digestives and Penguin biscuits see reduced sizes but higher costs.
- The Russian-Ukraine conflict significantly impacted food production costs.
- Rising prices of ingredients like olive oil are influencing product price hikes.
In an unsettling trend for consumers, shrinkflation is making its presence felt as package sizes decrease while prices creep upwards. An investigation highlighted by The Telegraph has shown a noticeable rise in unit prices across supermarkets, such as Tesco, Sainsbury’s, Asda, and Morrisons. This development is causing shoppers to pay more for less, adding strain to consumer budgets.
Investigations conducted into item pricing have revealed that common products like McVitie’s Digestives have undergone notable changes. These popular treats have seen a reduction in size from 400g to 360g, while prices have surged by £0.20, reaching £1.80. Similarly, packaging for Penguin biscuits has decreased from eight to seven bars, with prices inflating from £1.25 to £1.50, indicating a consistent pattern of reduced quantity and increased financial outlay.
Recent economic analyses indicate that the upheaval following Russia’s invasion of Ukraine significantly affected the cost of essential commodity crops, such as wheat and vegetable oils. These commodities are critical in producing many staple British goods, including biscuits. As inflationary trends continue, the expectation is for food prices to remain at elevated levels across multiple categories.
Another product facing down-sizing is Hellmann’s mayonnaise, which has seen an alteration from 800g jars to 600g. Despite the 25% reduction in product size, prices rose by 14%, climbing to £3.75. The cost of key ingredients like olive oil and eggs have escalated, the former rising by 49% over a year, contributing further to the consumer price burden. Insights from the Office for National Statistics substantiate these findings, suggesting a broader trend of increasing costs across basic food ingredients.
The persistent trend of shrinkflation points to continued economic pressure on consumers, necessitating keen attention to market changes.
