Dear readers, yesterday, I watched yet another interesting episode of “Talking Point” on Channel NewsAsia. Yesterday’s episode was on a concept called “ShrinkFlation” , a term which I first heard of yesterday. I think many of us heard about “Inflation” and some of us also know about this term “Stagflation” but “ShrinkFlation”?
Basically, ShrinkFlation is where without much notice, the items that consumers buy become reduced in size though the price may still be the same. New packaging, examples taller containers but with smaller bases (i.e. reduced overall volumes) give consumer impressions items they buy at same price have become more but the reality is actually the opposite.
An example of Shrinkflation that was highlighted in the “Talking Point” show as how a popular drink had its contents reduced from 330ml to 320ml without many consumers noticing.
Then what about my favorite Bak Chor Mee whose price has increased from $2.50 to $3 (due to rising cost of ingredients as cited by the stall holders) but with reduction of contents? Should I call it InShrinkflation?
Prices in Singapore for many items have indeed risen even without the increase in GST (from 7% to 8% in 2023 and then to 9% in 2024). I would encourage all to be prudent with your spending, save more but do, once a while, give yourself little treats and relaxation for all work and no play makes Jack a dull boy.
Interested in understanding more about Shrinkflation? Watch the Talking Point video below.
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