Rising raw material, energy and labor costs have forced UK companies to downsize their products
Food giants and other UK companies have recently downsized their products in response to rising costs to maintain the same price. Economists warn inflationary pressure will persist for the rest of the year, meaning Britons will feel the impact of ‘shrinkflation’ more strongly as businesses pass the costs on to customers.
According to the Institute of Grocery Distribution, 80% of UK shoppers have noticed ‘shrinkflation’ – the practice of downsizing a product – that has occurred in retail over the past 12 months. Sweet snacks, refrigerated items, and fresh meat and fish have all declined over the past year, consumers said.
According to the Office for National Statistics (ONS), the average price paid for food and non-alcoholic beverages increased by 5.9% compared to last year, and the cost of restaurants and hotels jumped by 6 .9%.
Experts point to rising costs, labor shortages and supply chain issues among the factors putting inflationary pressure on food supply chains. The hospitality industry has also coped with the post-pandemic recovery.
UK releases bleak economic forecast
‘Shrinkflation’ has taken place in the UK for the past decade, with ONS data revealing that the size of 206 products shrank between September 2015 and June 2017. The trend is set to continue this year amid cost of living crisis. in Great Britain.
The Bank of England previously issued a stark warning, saying Britons would suffer a “historical” a shock to their incomes as he expects record inflation to continue to rise. On Thursday, the regulator said the cost of living crisis could push the economy into recession this year.
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