CONSUMERS are getting less bang for their hard-earned bucks as manufacturers downsize their products to contain costs. Prices, however, have remained the same and, in some cases, increased.While waistlines all over SA may be taking a much-needed break, the ongoing trend is taking a significant bite out of consumer pockets.The term shrinkflation describes the practice. While not an official economic descriptor, it is understood to be a rise in the general price of goods per unit weight or size, with a corresponding reduction in the weight or size of the product sold.Investec economist Kamilla Kaplan said this usually took place when companies were feeling margin pressure.Domestic factors steering the practice include rising operating costs, depressed consumer spend and a subdued outlook for the local economy."In a weak consumer environment, it is difficult to pass on price increases as you risk losing market share. So, companies will opt for cost rationalisation to alleviate some of ...
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