PepsiCo is taking a bold step to combat ‘shrinkflation’ by offering larger bags of chips at the same price. The move aims to attract cost-conscious consumers and revive flagging snack sales, which have been impacted by rising inflation and shrinking purchasing power. This strategic shift could signal a trend in the industry, with other snack manufacturers potentially following suit.
Fans of the iconic Fab lolly have noticed a potential shrinkflation issue, with the chocolate section seemingly smaller than usual. Nestlé, the brand behind Fab, is investigating the concerns and assures consumers that no changes have been made to the lolly’s size. The investigation comes amid widespread concerns about shrinkflation affecting various products in the UK.
John Severson’s letter highlights the underestimated impact of inflation on consumers. The omission of shrinkflation, or package downsizing without price reduction, from the Consumer Price Index (CPI) results in an understated base for calculating future CPI increases. This error compounds over time, particularly affecting retirees reliant on Social Security or federal retirement checks tied to CPI adjustments.
