Consumers are increasingly paying the same but getting less — and they don't always notice it.
This is about shrinkflation: manufacturers reduce the weight or volume of products while keeping the same price. For example, chocolate 'loses weight' from 100 to 90 grams, butter from 200 to 180 grams, a liter of kefir turns into 900 ml, and rolls of paper become thinner.
This practice has become particularly noticeable after the EU lifted strict requirements on standard packaging sizes — this gave companies more freedom.
"Manufacturers have started to 'play' with packaging sizes... we open a large box, but inside is a smaller one — 20% less," says the head of the Latvian Traders Association, Henrik Danusevich.
Economists explain: this is a way to curb price increases against the backdrop of rising resource costs and competition. "Reducing packaging... allows not to raise the product price," notes Professor Sandra Jakabson from the University of Latvia.
As a result, a 'compression' effect occurs: products gradually decrease in size, while consumers continue to pay the same or even more.
