The Scottish Mail on Sunday

Now shoppers are hit by new wave of SHRINKFLAT­ION

After Bank of England warns of 10% price rises and biggest fall in salaries since 1990...

- By Daniel Jones CONSUMER AFFAIRS EDITOR

HARD-PRESSED shoppers are facing a major new swathe of hidden price increases as food giants quietly reduce the size of hundreds of products while still charging the same prices.

The Mail on Sunday has discovered major brands such as Muller, McCain, McVitie’s and Pepsi have turned to crafty ‘shrinkflat­ion’ tactics to increase the price of their products, adding to the cost-of-living crisis engulfing families.

Some packets have reduced by as much as a quarter with manufactur­ers apparently hoping that will be less obvious to shoppers than direct price rises.

Such widespread shrinkflat­ion has not been seen since the aftermath of the 2008 credit crunch and is driven by firms anxious not to raise product prices despite the rising cost of raw materials, energy and transport.

Examples include Philadelph­ia cream cheese which has gone from 340g to 280g but still costs £3.

Retail expert Sarah Coles, from financial services firm Hargreaves Lansdown, said: ‘When we’re racing around the supermarke­t, we’re far more likely to remember that it cost £3 last time than we are to

‘It’s easy to overlook this kind of stealth price rise’

have an eagle eye on the weight, especially as the pack looks much the same. It’s easy to overlook this kind of stealth price rise.’

McCain has started selling 2.1kg bags of chips for £4 at Asda and Sainsbury’s with ‘bigger bag’ boldly written on it. However, the previous equivalent pack weighed 2.25g, meaning the new bags are seven per cent lighter.

Muller has cut sizes across its range of Corner yogurts, and Nestle’s popular Azera instant coffee was reduced in February from 100g to 90g, but still costs £5.49.

Meanwhile, Kleenex has reduced its £1 tissues from 72 sheets to 64 per box and each of the four ice creams in a Magnum Classic multipack are now 100ml, down from 110ml.

Warburtons has discontinu­ed an eight-pack of white sliced rolls that was available at stores including Asda for 99p, leaving only a sixpack, priced at £1, in its range. However, a spokesman said: ‘Shrinking the weight of our loaves or the number of products in a pack is not something we have done.’

Consumer groups urged brands and retailers to be more honest with shoppers. ‘It’s understand­able from the point of view of the food manufactur­er and the supermarke­t,’ said Ms Coles.

‘Their costs are rising and they want to increase the price per gram, but don’t want to put us off buying these items or encourage us to trade down [to cheaper] brands by raising the price, so shrinkflat­ion is their solution.

‘It makes comparing prices so much harder. Ideally we should be making a note of pack sizes when we’re throwing out empty boxes and tubs, so we can check the size of the new one when we pick it up.’

Official figures show consumer prices across the board soared by seven per cent in the year to March, the highest increase for 30 years. As it raised interest rates last week, the Bank of England warned inflation would hit ten per cent this year, the highest since 1982, while reporting a 3.75 per cent fall in average takehome pay – the biggest decrease since records began in 1990.

Explaining its ‘shrinkflat­ion’,

Kleenex said: ‘Significan­t increases in costs for energy, transport and raw materials has made it necessary to make changes. We have removed sheets from boxes

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