Higher prices, smaller packaging: ‘shrinkflation’ impacting grocery bills

Higher prices on just about everything has many consumers paying closer attention to their...
Higher prices on just about everything has many consumers paying closer attention to their receipts, including at the grocery store.(WEEK/Heart of Illinois ABC)
Published: Mar. 30, 2022 at 7:00 PM CDT
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WEST PEORIA (Heart of Illinois ABC) - Higher prices on just about everything has many consumers paying closer attention to their receipts, including at the grocery store.

The USDA said shoppers are spending about four percent more on food.

At Haddad’s West Peoria Market, general manager Christopher Stuckey say more people are doing less shopping.

“We’re seeing a little bit of a decrease in foot traffic, [which] think, which is being caused by that,” Stuckey said.

“We are having to do some broad raising of the prices,” Stuckey said.

Stuckey said high gas prices are also having an impact on bringing in inventory.

[It’s] limiting where people are making budgeting decisions on where they want to go with the gas that they have,” Stuckey said.

With those high prices also comes smaller packaging, also known as ‘shrinkflation’, which Stuckey says you see more in items like chips and Gatorade...but why exactly is that the case?”

Bradley University Adjunct Supply Chain Professor Daniel Stanton said it’s costing food manufacturers more to get products on the shelves, so some are turning to smaller packages.

“They want to provide us with the things that we want to buy, but they have to make a profit doing it,” Stanton said.

“You can think about all the farms and all the factories, and all the times the ingredients had to be transported, we’ll every single time it got touched, the labor costs for producing and shipping that have gone up, the price for fuel for transporting it has increased,” he added.

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