As I have already mentioned in other articles on the subject, inflation does not always appear to the consumer by the increase in prices as many imagine, especially given the competition with other brands for lower prices. In certain cases, the product does not become more expensive, but the packaging starts to bring fewer units or comes with smaller weights and measures than before, which is exactly what is happening in Brazil and in the world at the moment.
In practice, the phenomenon is known in English as “shrinkflation” and can be translated as “reduplication“. It is a commercial strategy of the brands: to reduce the product so as not to increase the price. In practice, it is more expensive for the consumer, because he is buying less quantity with the same money. Here's even my question: don't you think this unique and exclusively environmental proposal of “remove cell phone chargers” and not “reduce the price of the product” is strange? The question stands…
Returning here to Brazil, millions of Brazilians already live with cumulative inflation of 9.68% in 12 months, have been complaining about smaller and smaller products. To give you an idea, a box of eggs that no longer comes with a dozen, chocolates and cookies that have shrunk, the washing powder that lasts less. There are several practical examples that are currently taking place for adaptation.
It is important to note that by national law, companies are required to notify the packaging when there is a reduction. However, consumer protection agencies say that this warning is not always clear enough. In the State of São Paulo, for example, if the notice is too short, the consumer can request a full refund. Did you know about this one?
Drastically reduction in paçoca
Not even paçoquinha, a Brazilian passion that is exported to the world, has escaped inflation. One of the largest Brazilian manufacturers, Santa Helena, informed the UOL portal that it reduced 4g of rectangular packaging, including those of the Cuida Bem brand. According to the company Santa Helena, the reduction is because of inflation in raw materials. The company says there was an increase in 50% for peanuts and 39% for packaging.
Packet of rice and sugar are smaller
In addition to paçoca – famous paçoquita and also several chocolates that reduced from 110 grams to 90 grams, candy consumers felt the “shrinkflation” even in the package of sugar, which has been sold under 1 kg. It's bizarre and scary, says several consumers.
The other day, I was tricked (🤡) by a bag of refined sugar. Generally, we are used to packages of 1kg, without different packaging, with different weight. I paid ten cents less for an EIGHT HUNDRED GRAM bag of caster sugar. Great "economy". pic.twitter.com/2BrbyqMEJv
— Thiago C. (@thiagoch8) July 16, 2021
But Juan, how to solve this problem? I would love to have a simple and unique answer to solve such a huge problem and full of variables, but the most important thing right now is, as far as possible, invest your money according to your possibilities, to correct this gap margin of more than +10% of inflation in Brazil. The most important thing is to diversify to balance your portfolio and reduce the impacts of Inflation on your life or business.
And you, what did you think of this article on Inflation?
