Daily Archives: April 10, 2011

Inflation Grows as Packages Shrink

It really isn’t new, ice cream containers were reduced from a full half gallon to 1.75 quarts several years ago. Some have shrunk again to 1.5 quarts. Packaging is shrinking everywhere and at an increased rate. Yogurt containers hold just 6 oz instead of 8. Cereal boxes are getting smaller. Snacks are lighter in weight but not in calories. It is part of the hidden inflation that affects us as well as the more obvious forms of inflation. Inflation is growing everywhere despite assurances from the Federal Reserve that inflation either does not exist or is transitory.

With real annual income reduced for most households, manufactures have to be more creative in meeting their costs. By keeping the prices relatively the same but decreasing the volume, weight or count, improves their revenues. Many manufactures alter the physical size of the package little or create new internal packaging, such as changing the spacing so that a package now holds only 22 cookies instead of 24. Most of the time this is subtle enough to be easily accepted by the consumer.

So, if you think there is less in the package than before, you just might be right.

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