Shrink inflation is getting worse

The essence of shrinking inflation is that while the packaging of products decreases, prices do not change. Therefore, consumers pay more for a unit of product, even if the packaging and brand remain the same. In Hungary, stores with sales revenue of at least HUF 1 billion must indicate from January 2024 if the packaging of a product is reduced. This measure serves the purpose of making customers more informed about the contents of the products, the Index reports.

Based on the April data, the following examples illustrate contractionary inflation:

• Dishwashing detergents: The packaging of washing-up gels decreased by 14-15 percent, while that of tablets decreased by 4-7 percent.
• Cheeses: Tihany camembert cheeses have become 4 percent smaller.
• Dairy products: Milli Caucasian kefir decreased by 11 percent, while curd dessert decreased by 40 percent.
• Sour cream and drinks: The 20 percent Hungarian sour cream of the Alföldi tej brand has 30 grams less, and the 1-liter Alpro almond drink contains only 750 milliliters.