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From Chocolate To Beer, Shrinkflation Is Unseen Pressure

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http://www.bloomberg.com/news/2014-09-03/from-chocolate-to-beer-shrinkflation-is-unseen-pressure.html

Inflation may be lurking in the aisles of supermarkets.

Even with price pressures tame to non-existent in the industrial world, economist Pippa Malmgren says they’re there if you look.

A former adviser to President George W. Bush, Malmgren is zeroing in on what’s come to be known as “shrinkflation” -- where companies charge consumers the same, or more, for less. That may foreshadow an overall jump in prices, an alarm she’s been sounding for a while.

“Shrinking the size of goods is exactly what happened in the 1970s just before inflation proper set in,” she writes in her new book, “Signals: The Breakdown of the Social Contract and the Rise of Geopolitics.”

Inflation what all central bankers are looking for....

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Only 'unseen' because half the population (or more) appear to be so thick as to not even look carefully at the things they buy (or remember what these things looked like 6 months or a year previously).

An even more insidious issue is that of ingredient substitution - taking good quality things out and putting crap in. You can't tell visually (more often than not) and the package will also probably be the same size and weight.

Edited by Errol

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Only 'unseen' because half the population (or more) appear to be so thick as to not even look carefully at the things they buy (or remember what these things looked like 6 months or a year previously).

An even more insidious issue is that of ingredient substitution - taking good quality things out and putting crap in. You can't tell visually (more often than not) and the package will also probably be the same size and weight.

Tried a KitKat lately? Almost inedible.

Don't know what they did, but they're vile.

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Only 'unseen' because half the population (or more) appear to be so thick as to not even look carefully at the things they buy (or remember what these things looked like 6 months or a year previously).

An even more insidious issue is that of ingredient substitution - taking good quality things out and putting crap in. You can't tell visually (more often than not) and the package will also probably be the same size and weight.

Usually easy to spot. Just look for the 'Nestle' logo.

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Tried a KitKat lately? Almost inedible.

Don't know what they did, but they're vile.

Agree. Not sure what they did but kitKats taste/texture makes me think they are stale/gone off.

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Only 'unseen' because half the population (or more) appear to be so thick as to not even look carefully at the things they buy (or remember what these things looked like 6 months or a year previously).

Which half are you in?

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Tinfoil hattery........

Product pack size changes are obviously included in the CPI index

from the ONS CPI guide......

Of course, big brands will attempt to con their customers by all means possible. That's how free markets work after all....

A simpler example occurs where a manufacturer changes the size
or weight of a product. For example, this has happened with the
size of some confectionery products being reduced. Not adjusting
for this change would result in an index showing lower inflation
than an index that is adjusted for the change.In this way, quality
adjustment helps to focus the index on ‘underlying’ price changes
for a fixed basket of goods and services

http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCMQFjAA&url=http%3A%2F%2Fwww.ons.gov.uk%2Fons%2Fguide-method%2Fuser-guidance%2Fprices%2Fcpi-and-rpi%2Fconsumer-price-indices--a-brief-guide.pdf&ei=lEAHVKXcI6afygPU6ID4Bg&usg=AFQjCNEZ6Cqr7ZlL77SXPju9CjY1jZoOoA&sig2=qdkAO57_iFIiAhXw5g0bvg&bvm=bv.74115972,d.bGQ&cad=rja

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Tinfoil hattery........

Product pack size changes are obviously included in the CPI index

from the ONS CPI guide......

Of course, big brands will attempt to con their customers by all means possible. That's how free markets work after all....

http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCMQFjAA&url=http%3A%2F%2Fwww.ons.gov.uk%2Fons%2Fguide-method%2Fuser-guidance%2Fprices%2Fcpi-and-rpi%2Fconsumer-price-indices--a-brief-guide.pdf&ei=lEAHVKXcI6afygPU6ID4Bg&usg=AFQjCNEZ6Cqr7ZlL77SXPju9CjY1jZoOoA&sig2=qdkAO57_iFIiAhXw5g0bvg&bvm=bv.74115972,d.bGQ&cad=rja

Substituting rat meat for beef in pies is not covered by the ONS.

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the rising cost of living is better for my health though.

Since the crash I've given up smoking, stopped drinking alcohol and no longer eat any sugary snacks at all. And I cycle practically everywhere.

I'm doing my bit to break the economy.

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Tinfoil hattery........

Product pack size changes are obviously included in the CPI index

from the ONS CPI guide......

Of course, big brands will attempt to con their customers by all means possible. That's how free markets work after all....

http://www.google.co.uk/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CCMQFjAA&url=http%3A%2F%2Fwww.ons.gov.uk%2Fons%2Fguide-method%2Fuser-guidance%2Fprices%2Fcpi-and-rpi%2Fconsumer-price-indices--a-brief-guide.pdf&ei=lEAHVKXcI6afygPU6ID4Bg&usg=AFQjCNEZ6Cqr7ZlL77SXPju9CjY1jZoOoA&sig2=qdkAO57_iFIiAhXw5g0bvg&bvm=bv.74115972,d.bGQ&cad=rja

But not the swapping of using cheaper inferior ingredients.

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the rising cost of living is better for my health though.

Since the crash I've given up smoking, stopped drinking alcohol and no longer eat any sugary snacks at all. And I cycle practically everywhere.

I'm doing my bit to break the economy.

Ditto. Close on 30 items of discounted food from Tesco last night for under a fiver. That's all of the week's fresh food bought bar bread.

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Well, no luck in my household. I am an ex IT infrastructure architect. Now have about £10 a week to play with. Apparently it is against the law to employ the over Fifties in any kind of job with set hours.

I used to drink Chablais and Peroni.

Now, at 22.5p a pint including brewing sugar I drink;

0318382_l.jpgLuvverly Jubbly! And very deflationary!

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The last time I bought a Mars bar was when it was 65g, it's now 51g. I came across some reduced bars and honestly thought they were fun size.....I couldn't believe how small they had become.

Thank God for Mr Choc at Lidl and their Mars bar for 20p... LiDeflation.

Meanwhile the effect of shrinkflation on the body...........

http://www.123rf.com/photo_3280373_obesity.html

Guess the OP hadn't factored in ten bars for a pound from Poundland.

Edited by crashmonitor

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I had to double check on these' fun size' bars, wondered if they were just a Co-op special..and yep Mars are having a laugh with their 51 g mini bar......

http://www.thegrocer.co.uk/fmcg/mars-bars-shrink-but-price-stays-the-same/352754.article

Guess Mars are doing their bit for the Nation's waistlines...out with one mars bar and in with ten for a pound of some obscure brand at Poundland. The law of unintended consequences.

Edited by crashmonitor

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But not the swapping of using cheaper inferior ingredients.

That's capitalism & competition.

Why would a manufacturer give you more for less money?

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That's capitalism & competition.

Why would a manufacturer give you more for less money?

Swap those for productivity and worker too. Edited by 8 year itch

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OT, but out of interest, do you finish in a pressure keg or in bottles?

Pressure keg - out of laziness. I add 100g sugar to the barrel (carefully!) and leave for a couple of days.

After about half way down I add 1 CO2 cartridge. (With me and the missus, half way down is only 3 days!)

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