{"id":22529,"date":"2024-04-15T12:43:54","date_gmt":"2024-04-15T07:13:54","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=22529"},"modified":"2025-04-06T20:18:19","modified_gmt":"2025-04-06T14:48:19","slug":"shrinkflation","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/shrinkflation\/","title":{"rendered":"What is Shrinkflation?"},"content":{"rendered":"<h3>About Shrinkflation<\/h3>\n<ul>\n<li>It occurs when <strong>goods shrink in size<\/strong> but <strong>consumers pay the same price<\/strong>. It occurs when manufacturers downsize products to offset higher production costs but keep retail prices the same.<\/li>\n<li>It is basically a form of <strong>hidden inflation.<\/strong><\/li>\n<li>Instead of increasing the price of a product, producers reduce the size of the product while maintaining the same price.<\/li>\n<li>The absolute price of the product doesn\u2019t go up, but <strong>the price per unit of weight<\/strong> or volume has <strong>increased.<\/strong><\/li>\n<li><strong>Reasons:<\/strong> The reasons for shrinkflation are <strong>rising production costs and market competition.<\/strong><\/li>\n<li><strong>Impacts:<\/strong>\n<ul>\n<li>These are products <strong>sold quickly <\/strong>and at a <strong>relatively low cost<\/strong>. The FMCG industry is characterized by high-volume sales, quick inventory turnover, and various products catering to consumer needs.<\/li>\n<li>These goods include <strong>essential everyday items<\/strong> such as food and beverages, toiletries, cleaning supplies, and other low-cost household items.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h3>Q1: What Is Inflation?<\/h3>\n<p>Inflation is a measure of how quickly prices are increasing over time. In other words, inflation measures how quickly money loses its purchasing power.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.financialexpress.com\/business\/industry-shrinkflation-makes-its-way-back-into-fmcg-3456683\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Shrinkflation makes its way back into FMCG<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shrinkflation occurs when goods shrink in size but consumers pay the same price. It occurs when manufacturers downsize products to offset higher production costs but keep retail prices the same.<\/p>\n","protected":false},"author":5,"featured_media":22530,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":{"0":"post-22529","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-prelims-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/22529","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=22529"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/22529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/22530"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=22529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=22529"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=22529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}