How INSEE hunts down “shrinkflation” which misleads consumers about real prices

by time news

2023-12-20 17:30:18

The temptation is great for manufacturers and distributors to reduce the quantity of product to reduce the price. Drobot Dean – stock.adobe.com

DECRYPTION – To curb price increases, some manufacturers and distributors are reducing the quantities offered. If consumers do not always notice this, the investigators responsible for calculating inflation are not fooled.

No economic prosperity until inflation is brought under control. “Inflation is the first enemy of growth because it is also the first enemy of confidence,” estimated François Villeroy de Galhau, the governor of the Bank of France, on Tuesday, presenting his new economic forecasts for 2024, with the rise in consumer prices falling to 2.5% next year, falling to 1.8%. the next year.

While food prices have jumped 20.6% over the last twenty-four months (November 2021-November 2023), more than twice the overall inflation rate calculated by INSEE (9.8% ), there is a great temptation for manufacturers and distributors to reduce the quantity of product to reduce the price. What the Anglo-Saxons call the “ shrinkflation » (contraction…

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