Companies Are Raising Consumer Prices But You Have to Be a Sleuth to Detect It

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Some manufacturers are cutting the contents of packages, using so-called shrinkflation as a way to increase consumer costs without adjusting the sticker price

Product downsizing isn't new — U.S. companies have used the tactic for decades, Dworsky said. Larger sizes don't necessarily disappear forever; companies sometimes reintroduce them later but at a higher price, as with"family size" cereal boxes or"party size" potato chip bags.

Shrinkflation tends to come in cycles, though, and it's cropped up more regularly over the last several months.packages of a certain brand of raisins declining by about 2.5 ounces in weight, while another company has reduced the size of its rolls of toilet paper. Trims have also been made by certain brands of yogurt, body wash, soap and cookies.about 40 years"It's a double whammy," said Jack Gillis, executive director of the Consumer Federation of America, an advocacy group.

Raising prices and reducing volume help companies buoy their bottom lines. Their costs are rising, too. Covid-19 outbreaks and theare snarling supply lines, lifting prices for raw materials, and higher gas and fuel prices may cause elevated shipping costs to distribute goods, for example. Consumer advocates suspect, however, that some companies may artificially lift prices for consumers to take advantage of the inflationary environment and boost profits.

 

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