"Shrinkflation" in food: consumer advocates complain about hidden price increases

Created: 2022-08-23 05:28

By: Alexander Eser-Ruperti

Almost everything is getting expensive, you don't notice that at first glance everywhere.

Consumer advocates are now sounding the alarm: Hidden price increases for food are increasing.

Berlin – Consumers are worried about price increases in almost all areas.

Some are not to be overlooked, such as the exploding gas prices - they should hardly have escaped anyone's notice.

But hidden price increases are also a burden on people's finances in Germany.

Consumer advocates are now sounding the alarm: food prices in Germany are rising more and more often.

All kinds of products are affected.

Food prices in Germany and "shrinkflation": consumer advocates warn of hidden costs

In times of inflation, almost everything becomes more expensive, and the additional costs are also noticeable when shopping in the supermarket.

But not always right away: Some price increases are so hidden that they are not noticeable at first glance.

Food prices in Germany are sometimes rising almost unnoticed.

The Hamburg consumer advice center is registering more and more complaints about hidden price increases: producers are reducing pack sizes while prices remain the same - or even rise.

Examples of these cases abound, affecting different segments.

The phenomenon already has a name: "shrinkflation", a combination of "inflation" and "to shrink".

It's getting more expensive everywhere, which is why many consumers resort to discounter comparisons.

Groceries are in a shopping cart in a supermarket.

Consumer advocates warn of hidden price increases for food.

(Iconic image) © Hendrik Schmidt/dpa

Food prices rise: "Experiencing the first wave of hidden price increases"

The food expert at the consumer center, Armin Valet, told the German Press Agency: "We are currently experiencing the first wave of such hidden price increases." The consumer center is increasingly registering such cases with discounters' own brands.

It is no longer only branded products that are affected.

Although the hidden food price increases are legal, they are clearly to the detriment of consumers.

Experts also expect further price increases for food.

Rising Food Prices: Hidden price hikes in food may yet to peak

According to consumer advocates, the hidden price increases may not have peaked yet.

Valet explains: "I think there is still a lot to come." The reason for this is that retailers need around six months to change labels and sell off old goods, says Valet.

Rising food prices are therefore still not unlikely - shrinking packaging will also play a role.

So it's a good idea to take another look when browsing the supermarket shelves.

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Haribo, among others, has already announced that it will reduce the size of the packs while maintaining the same prices for the respective products - that's just one example.

Remarkable: At Nestlé, for example, sales in the first half of 2022 increased by 9.2 percent compared to the previous year.

Despite higher production costs, supply chain problems and the like, many large companies are seeing sales increases.

Meanwhile, hidden price increases are increasingly burdening consumers' wallets: According to the Federal Statistical Office, non-alcoholic beverages and food were around 14 percent more expensive in July this year than in the previous year.

Rising food prices and inflation: Many consumers are skipping meals

According to an Insa survey from June, every sixth person in Germany is already doing without a regular meal due to high costs.

In the debate about a new relief package, the abolition of VAT on certain foods was recently discussed - but not decided.

Especially under Hartz IV, it is hardly possible to eat enough, let alone live a healthy life.

For three meals, recipients stay around five euros under the current standard rate, which was far too little for healthy food even before inflation.

With rising food prices, the situation becomes even more dramatic.