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New deception in markets: The consequence of inflation that many do not notice

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This is happening all over the world and it is only a matter of time before it affects Serbia.

From toilet paper, to yogurt and coffee, to corn chips, manufacturers around the world are quietly reducing package sizes – without lowering prices. This phenomenon is called "shrinkflation" and is observed in many countries.

In the US, a small box of Kleenex now holds 60 tissues; and a few months ago she was 65. Chobani Flips yogurts have shrunk from 150 ml to 130 ml. In the UK, Nestle has reduced its Nescafe Azera Americano coffee from 100 grams to 90 grams. In India, a bar of Vim dish soap has shrunk from 155 grams to 135 grams.

Reducing the amount of products is nothing new, experts say. But it expands in times of high inflation, as companies struggle with rising costs for ingredients, packaging, labor and transportation.

Global consumer price inflation rose 7 percent in May, a pace that is likely to continue through September, according to S&P Global.

"It comes in waves." "We're in a tidal wave right now because of inflation," said Edgar Dvorsky, a consumer advocate and former assistant attorney general in Massachusetts, who has documented the shrinking of the product for decades on his Consumer World website, NPR reports.

Dvorsky said shrinking is attractive to manufacturers because they know customers will notice the price increase, but won't monitor net weight or small details, like the number of sheets on a roll of toilet paper. Companies can also use gimmicks to draw attention away from reducing product quantities, such as marking smaller packages with bright new labels that attract customers' eyes.

Some companies are transparent about the changes. In Japan, snack maker Calbee Inc. announced a 10 percent weight reduction — and a 10 percent price increase — for many of its products, including vegetable chips and crispy edamame. The company blamed the sharp rise in the price of raw materials.

Sometimes this phenomenon can be reversed. As inflation eases, competition could force manufacturers to lower prices or reintroduce larger packages. But Dvorsky says that when a product shrinks, it often stays that way.

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