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Shrinkflation Evaluated By The Bureau Of Labor Statistics

08/13/2022

The 13.1 percent increase in the grocery component of the Consumer Price Index in July included “shrinkflation” according to Brooke DiPalma, writing in Yahoo! Finance on August 11th.

 

Steve Reed, an economist with the Bureau, indicated that any reduction in size of containers resulting in an effective increase in unit price was tracked and is incorporated in monthly indexes.

 

The term Shrinkflation was coined by Pippa Malmgren an economist in the U.K. to draw attention to a long-term commercial practice.  Candy bars, specifically, have been successively reduced in size, as a proportion of sales are through vending machines.

 

The only practical shrinkflation that can occur in egg production relates to USDA size.  Over the past five years, packs of eggs have increased in number from the conventional dozen up to 24 with 30-egg and larger units available at club stores.  Enriched and specialty eggs are still available in six-packs, not only to reduce the unit of purchase but as a convenience for single-person households.  Although reduction in pack size increases the cost of packaging that is counter to sustainability, in certain markets and with specific products shell-egg shrinkflation could be justified.