Shrinkflation is an economic phenomenon where the size or quantity of a product decreases while the price remains the same or even increases. This phenomenon was first noticed during the 2008 economic crisis when producers, faced with rising production costs, started reducing the quantity of products in packages to avoid raising prices. Common examples include reducing the weight of chocolate, biscuits, and other products while the packaging remains similar. Shrinkflation can also apply to services, where the amount of service included in a package decreases but the price stays the same. Some countries like France, South Korea, and Italy have introduced measures to increase transparency and inform consumers about product quantity reductions. In Croatia, the problem is not yet adequately regulated but is becoming increasingly prevalent. Consumers should be cautious and informed about this hidden form of price increase.
Political Perspectives:
Left: Left-leaning sources tend to emphasize the negative impact of shrinkflation on consumers, highlighting it as a deceptive practice by corporations to increase profits at the expense of consumers. They often call for stronger government regulation and consumer protection to combat this hidden inflation and ensure transparency.
Center: Center-leaning sources provide a balanced view, explaining shrinkflation as a response by producers to rising costs without raising prices directly. They focus on informing consumers about the phenomenon and note the regulatory measures taken by various countries to increase transparency and protect consumer rights.
Right: Right-leaning sources may emphasize the market-driven nature of shrinkflation, viewing it as a natural business response to economic pressures such as increased production costs. They might stress the importance of consumer choice and responsibility, suggesting that consumers should be vigilant and make informed decisions rather than relying heavily on government intervention.
