Consumers face growing concerns as shrinkflation impacts grocery prices.
- Portion sizes reduce while prices increase concurrently, a recent investigation reveals.
- Major supermarkets see product price doubling compared to the previous year.
- Experts predict persistent high food inflation throughout 2023.
- Key staples affected by global events, exacerbating the situation.
Consumers are increasingly experiencing the effects of shrinkflation, a phenomenon where product sizes decrease while prices maintain or increase, leading to higher costs per unit. This trend has been reported across several major supermarkets, including Tesco, Sainsbury’s, Asda, and Morrisons, with some products doubling in price compared to the same period last year.
Economists have highlighted that food inflation is expected to remain in double digits through the end of 2023. This expectation aligns with a broader trend of rising food prices, which appear likely to persist indefinitely. This has led consumers to pay more despite receiving less in quantity, a scenario contributing to financial strain for many households.
In February, an example of shrinkflation was seen with McVitie’s Digestives, where standard packs were reduced from 400g to 360g, with an accompanying price increase from £1.60 to £1.80. Similarly, multi-packs of Penguin biscuits were reduced from eight bars to seven, with prices rising from £1.25 to £1.50. These changes reflect input cost increases experienced by manufacturers, impacted by inflationary pressures across the supply chain.
The escalation of input costs, particularly since Russia’s invasion of Ukraine, has affected the production costs of Britain’s popular biscuits. Essential ingredients like wheat and vegetable oils have seen significant price hikes. For instance, Hellmann’s mayonnaise jars were downsized from 800g to 600g, with a price increase of 14% to £3.75, attributed to the rising prices of ingredients such as olive oil and eggs.
According to the Office for National Statistics, the price of olive oil alone increased by 49% over the year leading up to March 2023. These cost pressures continue to ripple through the sector, impacting both manufacturers and consumers substantially.
The ongoing issue of shrinkflation suggests a challenging financial environment for consumers, reinforced by persistent inflationary pressures.
