SPRINGFIELD, Mo. (KY3) — Shrinkflation occurs when you buy products on grocery store shelves that may provide less for the money you spend. Finance experts offer tips on how to avoid falling for it.
According to the U.S. Bureau of Labor Statistics, shrinkflation occurs when the price per unit the consumer pays increases as the amount they purchase decreases while the price they pay at the register remains the same. Shrinkflation has gained attention, with President Biden recently mentioning the issue. Even Cookie Monster took to X regarding shrinkflation.
Missouri State University’s head of the finance department, Dr. Jeff Jones, said shoppers can avoid paying more for less by checking the unit price of the product, which is usually located below the food product on a grocery store shelf.
“Rather than just the price of the item itself, what is the price per unit? Whether that’s a quantity, a number, or if it’s per ounce, just pay attention to what that price per unit is,” Dr. Jones said.
He said the unit price then tells you the cost per pound, quart, etc. He also emphasized how shrinkflation and inflation are tied. Some companies will use shrinkflation tactics, which tend to become more widespread during times of high inflation, which we’re currently seeing.
Dr. Jones also said it’s smart for consumers to ensure they know what product they’re buying before they get to the checkout register.
“Just keep in mind there are many options when you’re shopping, not only products within a store but also other stores,” Dr. Jones said. I think it’s just being diligent and doing your homework. If you’re into coupons, you can also look into coupons as a way to save additional money, but it’s really just being informed about what you’re purchasing.”
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