Consumers have noticed that their ice cream containers is just a little smaller or that the paper towel rolls are slimmer. It’s because of Shrinkflation.
This is a direct relation to economic downturns or periods of inflation. This has happened before during the 2008 economic rescission ABC.com published an article on how to beat Shrinkflation, what to look out for and how consumers can get more their money.
Shrinkflation is defined as the following consumers are charged the same or more or household goods or groceries but are receiving less in fluid ounce or quantity. As the States in the US re open supply and demand chains have become imbalanced as demand continues to increase it because it has become difficult to meet the demand as a result raw materials and transportation costs have skyrocketed.
There has also been reports of the labor shortage as the culprit for Shrinkflation as well as there have not been enough employees to have goods transported in time to meet consumer demand. CNBC warned of this earlier this month as the price of gas has increased.
CNN.com also reported on the labor shortage June 1st, 2021 stating that there are workers needed to fuel the US economy without filling these jobs the US economy will not recover from the financial strain of the COVID-19 pandemic.
According to CBS News grocery prices has increased 7-10% since COVID-19 pandemic and coupled with the difficulty to meet demands the decision was made to decrease the amount and not prices in order to not alarm consumers. However, consumers have noticed the change in sizes of their groceries and increase in gas prices and other services. As consumers voice their concerns on Twitter under #shrinkflation posting clear differences in sizes of their favorite items.
From #shrinkflation on Twitter
Also, CBS News reported that the supply and demand imbalance is expected to level by then end of 2021 as the US economy returns to normalcy. In the meantime consumers in the US will continue see a decrease in the size of their paper towels, ice cream diapers and other goods.