We’re used to our favorite cereal costing $3.50 per box so when the price goes up to $4 it’s something we notice. But do we notice when the box contains only 15 ounces instead of the 18 ounces it used to hold? From fewer toilet paper sheets to less toothpaste ounces, consumers are reporting ‘Shrinkflation’ – reduced product amounts for regular purchases due to inflation.
Understand How Shrinkflation Works- Because we pay more attention to price when we shop, we don’t notice subtle changes in packaging or read details about the size or weight of a product. During periods of high inflation, companies may downsize products so they can keep prices unchanged. This strategy is known as shrinkflation.
With US inflation figures from the Bureau of Labor Statistics showing prices increased 8.5% in the last 12 months, consumers may still not realize they’re paying more for most regular purchases than in 2021 and now they may have less product in the package as well.
Shop proactively using Unit Pricing; Unit pricing is a way to compare similar products to find the best value.
For example, carrots are available in different forms: full-sized and baby carrots. They are also available in different sized bags. Figuring the unit price can help you determine which carrots are the best value.
- One pound baby carrots, $0.99 ($0.99 per pound)
- Two pounds baby carrots, $1.89 ($0.94 per pound)
- One pound full-sized carrots, $0.68 ($0.68 per pound)*
*The full-sized carrots are the best buy. Consider whether you have the time to get the carrots peeled and cut up this week. If so, save money by buying the full-sized carrots.
Check out Iowa State University ‘Spend Smart, Eat Smart’s’ Unit Pricing help at: https://spendsmart.extension.iastate.edu/shop/compare-unit-prices-best-buy/
Shrinkflation will have less impact when making decisions that include unit pricing. Save money on groceries downloading the ISU ‘Spend Smart Eat Smart’ comparison calculator to find the best bargains – https://spendsmart.wpengine.com/shop/spend-smart-eat-smart-app/
Free financial counseling is also available to all Iowa residents through ISU Extension and Outreach’s Human Sciences Specialists in Family Finance. We can help revise budgets, prioritize spending and link you to community resources. To do so, contact Iowa Concern at 800-447-1985 and ask for free financial counseling, OR find your local specialist and contact them directly.