What is shrinkflation?
A price increase delivered by reducing pack size while keeping the shelf price the same or similar.
Definition
Shrinkflation happens when a product gets smaller (fewer ounces, fewer units per pack) but its price stays flat. The price per unit rises even though the shelf price does not.
Formula
Price per unit = shelf price / net pack size (per kilogram, litre or count)
Worked example
A 200g bar costs £2.00, or £10.00 per kg. The bar shrinks to 180g at the same £2.00 shelf price.
The price per kg rises to £11.11, an increase of 11.1%, even though the shelf price did not change.
How Data Purl measures it
Data Purl standardizes pack sizes from product names and attributes into a net size and unit of measure, then tracks price per unit alongside shelf price. A falling net size with a steady shelf price shows up as a rise in price per unit that the shelf price alone would miss.
Why it matters
Shelf-price data alone understates inflation in categories where pack sizes are shrinking. Price per unit is the correct basis for inflation comparisons in food, household and personal care.
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