"Inflation by stealth": How you're paying more without realising it
The saying usually goes “get more bang for your buck” but this has not been the case in recent years.
Aussies have been paying a lot more for products that are shrinking in size while prices remain the same.
Companies have been changing the size of their products while making the packaging a bit smaller, making it difficult for customers to see the difference.
Described by experts as “shrinkflation”, Aussies are paying too much for what should have decreased in price.
"You don't notice that you're paying more," InvestSMART's Evan Lucas told Nine News.
"So it's actually inflation by stealth."
Smiths chips, Kellogs cereal and Cadbury chocolate are obvious products that have fallen for the shrinkflation.
Original Tim Tams come with 11 biscuits in the packet, but that is not the case for other flavours such as Chewy Caramel, Choc Mint, Double Coat, which only have nine and cost the same as the original.
The delicious Pringle tubes, which have been commended for not selling air, has gone from 165g of chips to just 134g.
It’s expected that retailers will take advantage of upping their prices as petrol soars to more than $2 a litre, labour shortages and global supply chain issues.
Queensland University of Technology retail expert Dr Gary Mortimer predicts inflated grocery prices over the next few months.
“What we’re going to see in the next 12 to 18 months is slightly inflated food and grocery prices, somewhere between three and five per cent,” he told news.com.au.
“Shrinkflation is probably one strategy that we will see become more readily applied so that it doesn’t have a significant hit on the household bottom dollar.”
Dr Mortimer said many consumers would see shrinkflation as not fair, but retailers were aware of families doing it tough.
“By giving you a little less, maybe 25 or 50 grams, you can still essentially get the majority of the product [while not paying any extra].”
Customers are advised to compare the “price per 100 grams” labels before purchasing a product.
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