Watch Out For Hidden Inflation Costs As Packaging "Shrinks"

So you think that inflation is being held in check and the price of food isn't going up? Think again...

In the February Issue of Consumer Reports, it is being reported that more and more producers are decreasing the size and content of their products, but not the prices you are charged for them. This isn't a new technique for increasing cost without "upping" the price tag.. I can remember when I first noticed that a 5-lb bag of sugar had become 4-lbs, and when fresh pecans, almonds and walnuts began to show up in 12 ounce packages instead of 16 ounces. But now this pricing slight of hand is becoming more prevalent across the board- from the juice that you drink, to the soap that you use to wash your dishes.

What Does This Mean For the Prepper?

While many people generally gauge their purchasing decision by price, most experienced preppers have already learned to focus more closely on package volume or price per ounce. So while the common shoppers may continue to purchase their usual products, it will take some time for them to realize their losses.. which will probably occur when they find themselves making additional trips to the grocery store to replenish their stock of items that used to last a bit longer. It's important to realize that you will see many more of these shell games with commodity prices over time as the producers, manufacturers, distributors, merchandisers and ultimately the stores play their own numbers games to hide the results of inflation. Eventually something will have to give, and prices will go up.

So How Much "Shrinkage" Are We Talking About?

Consumer Reports recent study found packing reductions of up to 20 percent. For example, Ivory dish detergent shrank from its 30 oz. bottle to a new 24 oz. bottle due to increased costs for raw materials, according to a customer service representative. And Häagen Dazs ice cream's 16 oz. container shrank to a 14 oz. container due to the cost of ingredients and facility costs. It was either change the size of the container or raise the price, according to customer service.

Here are some of Consumer Reports findings:

Tropicana orange juice: 64 oz. container is now 59 oz. - a 7.8 percent reduction.

Ivory dish detergent: 30 oz. bottle is now 24 oz. - 20 percent reduction

Kraft American cheese: 24 slice package now holds 22 slices - 8.3 percent reduction

Scott toilet tissue: 115.2 sq. ft. now 104.8 sq. ft. - 9 percent reduction

Chicken of the Sea salmon: 3 oz. can now 2.6 oz. - 13.3 percent reduction

What can consumers do?

Compare multiple products for pricing and size. Not all manufacturers downsize. Minute Maid still sells its orange juice in half-gallons, and Ben & Jerry's packs its ice cream in pints.

Compare unit price. Always look at the pricing sticker on the shelf and review cost per ounce, per quart, per pound, per sheet, etc...

Watch for sales, loss-leader items and coupons. Promotions change, making one size or another cheaper from week to week. Stock up when you find a good sale.

Try store brands when sizes are comparable. House brands are usually 25 to 30 percent cheaper than name brands and are often at least as good.

Buy in bulk. Warehouse clubs may offer low prices on large sizes or multi-packs. But again, check the price per unit and be sure you are getting the best bargain because this is not always a given.

Contact the company and let them know that you do not like these types of deceptive practices. Call the consumer hot line number listed on the packaging when available - and complain. When Consumer Reports asked customer-service representatives why a product had been downsized, they often offered coupons as an apology.

Information for this article cited at Consumer Reports Website.

Country Consultant is a website dedicated to promoting the "good life" in the country with emphasis on self-reliant rural living. Dene Brock shares her own experiences and advice about country living, gardening, energy-efficiency, and a variety of of other related topics. If you would like to learn more, visit our website at http://www.countryconsultant.com/blogspot and be sure to subscribe to our email updates.

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