Smaller packages but prices rise, is it time for the government to tackle shrinkflation?

The British Retail Consortium has urged retailers to become more transparent on pricing amidst complaint regarding decreases in the size of products.

Transcript

00:00We're price-sensitive creatures, and by that I mean that if things go up, we tend to be

00:05more reluctant to buy them.

00:07In economic terms, this is known as elasticity of demand.

00:11So in the sense, then, that if we are going to have to pay more for things, or we want

00:16them to be of value, as it were.

00:19So of course, what the producers are, particularly sweets, particularly the things that we buy

00:24on impulse.

00:26So let's have a look at some recent examples, one being Listerine Fresh Burst Mouthwash.

00:31This has shrunk from 600ml to 500ml, while its price at Tesco rose by 52 pence.

00:38Also PG Tips Tasty Decaf Pyramid Tea Bags have dropped from 180 to 140 bags recently.

00:45But it's not just these products.

00:47Shrinkflation is a widespread issue, affecting many items.

00:51But of course, there comes a point at which the production, particularly the raw materials,

00:55if I may so say, in chocolate in particular, that has gone up quite tremendously in recent

01:00years.

01:01And there's been a big problem this year with the crops.

01:03So we're going to have to pay more.

01:04So the 99p, or whatever it might be, no longer makes the money.

01:08Therefore, of course, you try and keep the fixed price.

01:11But of course, you reduce the amount that's in it.

01:13The UK government has emphasised the need for transparency and clear labelling, with

01:18the British Retail Consortium supporting this view.

01:22They advise consumers to stay vigilant by comparing prices and unit costs to make informed

01:28choices.

01:29The big thing, we're coming up to Christmas.

01:32And of course, if you look online and you see the size of the tubs that we used to buy,

01:36compared to what they are now, they're a whole lot smaller.

01:40Because as I say, we're getting less for the amount of money.

01:43But again, I was talking to somebody recently, and a big tub that may cost, say, five quid,

01:49if we had as many suites as we used to have, going back only a couple of decades,

01:54you'd be paying 20, 30 quid for that, which of course would be beyond the scope of most families.