President Joe Biden made a bold statement about shrinkflation in his recent State of the Union address, accusing corporations of charging consumers more for less product. Shrinkflation is the practice of companies reducing the size or quantity of their products while keeping the prices the same.
Research from NPR has revealed that major companies like Dove and Tide have been implementing shrinkflation tactics. This tactic has a significant impact on household paper products and snacks, according to the U.S. Bureau of Labor Statistics.
Experts advise consumers to consider the price per unit when evaluating price changes due to shrinkflation. Companies blame the rising costs of production, such as tariffs, shipping expenses, and increased wages, as the reason for implementing shrinkflation.
In response to the growing issue, the White House has established a “strike force” on pricing to address shrinkflation and other consumer costs. However, critics are concerned that Biden’s efforts may lead to federal price controls.
One popular chip manufacturer, Frito-Lay, did not respond to inquiries regarding their plans regarding shrinkflation tactics.
The discussion surrounding shrinkflation continues to evolve, with both consumers and policymakers paying close attention to how it may impact their wallets. Stay tuned for more updates on this developing story.
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