Manufacturers of food and care products sell less content in the usual packaging. This development is not new, but it is increasing. An evaluation by Stiftung Warentest now shows which products in Germany are particularly affected.
According to German media reports, more and more complaints about hidden price increases are being received by consumer advocates. This phenomenon is also known as shrinkage inflation – a term made up of the English word “shrink” for shrinking and “inflation” (see video above). This refers to the sale of known product packaging with less content. In this way, the price of the products such as food and drinks becomes expensive.
From cocoa to mouthwash
Employees of the Hamburg consumer center and the Stiftung Warentest have now given several examples of this. The packaging of Suchard Express cocoa powder has been reduced from 500 to 400 grams, making it 25 percent more expensive. Not only do the Milka and Oreo popsicles have one less piece in the box, the weight of each piece has also been reduced. This means that prices have even increased by 48 and 63 percent.
There are also hidden price increases for personal care products. For example, Johnson & Johnson’s Listerine mouthwash is over a third more expensive. The Duschdas Sport shower gel achieved a plus of 22 percent.
inflation exceeded
“Most of the examples we show far exceed the inflation rate,” says Ina Bockholt of Stiftung Warentest. In July of this year, food inflation in Germany was 11 percent compared to the same month last year. In Austria, the inflation rate in July was an estimated eight percent. However, prices for the same food are often a tenth higher than in the neighboring country.
Where hidden price increases last year were mainly noticeable for classic brands, discounters and organic brands are now also being hit again and again. The procedure is not illegal, but consumer advocates say it is “extremely non-transparent.” For example, it advertises a “new form for finer enjoyment”.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
