Shrink inflation continues in Hungarian stores

By: Trademagazin Date: 2024. 08. 26. 12:18

In the past two months, the packaging of many products in Hungarian stores has again decreased, which further strengthens the phenomenon of shrinking inflation. Between June 25 and August 16, several manufacturers and distributors announced to the National Food Chain Safety Office (Nébih) that they would discontinue the previous packaging of their products, and the smaller they would be on the shelves. The change affected a number of products, including toiletries and household goods, cocoa powder, soda cartridges and sweets.

Shrink inflation, i.e. reducing the size of products while leaving goods unchanged, is an increasingly common practice in Hungarian stores. The government has made it mandatory for stores to inform customers about the reduction in packaging, unless the previous larger packaging is also sold for at least six months. Although companies do not have to report on price changes, in many cases there is a strong suspicion that hidden price increases are behind the reduction in packaging.

The reporting obligation applies to all prepackaged products that were distributed between January 1, 2020 and July 1, 2023, and which are available in stores with a turnover exceeding HUF 1 billion. The phenomenon continues to be a challenge for customers, who often only notice at the checkout that they are getting fewer products for the same price.