British shoppers hit by ‘shrinkflation’

British shoppers hit by ‘shrinkflation’

Food giants and other companies in Britain have been cutting the size of their products lately in response to rising costs to keep the price the same. Economists warn that inflationary pressure will remain for the rest of the year, meaning Britons will further feel the impact of ‘shrinkflation’ as companies pass the costs on to customers.

According to the Institute of Grocery Distribution, 80% of UK shoppers have noticed ‘shrinkflation’ - the practice of reducing the size of a product - happening in retail in the last 12 months. Sweet snacks, chilled products, as well as fresh meat and fish, have all been getting smaller in the last year, consumers said.

According to the Office for National Statistics (ONS), the average price paid for food and non-alcoholic beverages was up 5.9% over the last year, and the cost for restaurants and hotels surged 6.9%.

Experts point to rising costs, labor shortages and supply chain issues among the factors putting inflationary pressure on food supply chains. The hospitality industry has been also contending with post-pandemic recovery.

‘Shrinkflation’ has been taking place in the UK for the past decade, with data from the ONS revealing that 206 products shrank in size between September 2015 and June 2017. The trend is likely to continue this year amid a cost-of-living crisis in Britain.

The Bank of England earlier issued a dire warning, saying that Britons will suffer an “historic” shock to their incomes as it expects the record-high inflation to continue rising. On Thursday, the regulator said that the cost-of-living crisis could plunge the economy into recession this year.

For more stories on economy & finance visit RT's business section

Source: www.rt.com

The last notes - Экономика

most read news

#Экономика

Electricity prices in Germany are expected to jump to record highs next year, the Neue Osnabrucker Zeitung newspaper reported on Friday, citing the country’s local public utilities association
подробнее...

Russia has huge natural gas reserves that could last for more than a century, the head of state-owned Gazprom, Alexey Miller, said on Wednesday at the International Business Congress. “Our consumers,
подробнее...

One in six Italians, or up to nine million people, could sink into energy poverty due to soaring bills across the EU, Italy’s ANSA news agency reported on Saturday, citing the Italian General
подробнее...

The finance ministers of the Group of Seven influential nations announced on Friday their intention to ban maritime services transporting Russian oil if its price is not approved by ‘international
подробнее...

The Central Bank of Russia (CBR) is considering creating a compensation fund for local investors whose assets have been frozen by Western nations, Governor Elvira Nabiullina said on Thursday during
подробнее...

Russian energy major Gazprom's stock jumped 31% on Wednesday to 267.25 rubles per share (just over $4.43) on the Moscow Exchange, following the company’s announcement of bumper profits and dividend
подробнее...

Japanese automaker Toyota has decided to shut down its plant in St. Petersburg, Russia's Ministry of Industry and Trade said in a statement on Friday.The company vowed to fulfill all of its social
подробнее...

Washington has imposed restrictions on the sale of certain high-tech computer chips to Russia and China, a number of US media outlets reported on Thursday, citing two major US chipmakers, Nvidia and
подробнее...

Major European ports have signaled their readiness to facilitate the export of Russian fertilizers, UN Secretary-General Antonio Guterres said in an interview with RIA Novosti, published on
подробнее...

Nicaragua is ready to explore the use of the Mir payment system, developed by Moscow in response to Western sanctions, and allow the use of Russian credit and debit cards in the country, its minister
подробнее...

The Bank of Russia (CBR) is against the legalization of crypto-exchanges, exchangers and settlements in cryptocurrency within the country, RIA Novosti reported on Monday, citing the regulator’s press
подробнее...

One of Russia’s top banks, VTB has become the first lender in the country to launch money transfers to China in yuan, sidestepping the Western-controlled global financial messaging system SWIFT.“The
подробнее...

The proposal by the EU to place a price cap on Russian natural gas imports is a foolish, non-market-oriented plan that has no future, Russian President Vladimir Putin said on Wednesday.“Faced with
подробнее...

The share of Russian gas in the European Union market has plummeted from 50% to 9% since the beginning of the current year, French President Emmanuel Macron said on Monday. Russian gas imports by EU
подробнее...

The Moldovan government has launched a special website which will help citizens find firewood to heat their homes, authorities announced this week.“The site provides information about the nearest
подробнее...

Sri Lankan Transport Minister Bandula Gunawardane on Saturday apologized on the behalf of his country for detaining a Russian plane earlier this year that caused Moscow to suspend flights to the
подробнее...

Ukraine is ready to provide up to 30 billion cubic meters of his country’s gas storage facilities to the EU member states, according to the country’s Prime Minister Denis Shmigal.“We can offer our
подробнее...

The intense pressure placed on Russia by Western sanctions has forced the country to ramp up efforts to launch new factories and enterprises, according to Executive Director of the Russian-Chinese
подробнее...