Soon a new word may appear on everyone’s lips. Deflation, simply put, is this For the same price, you can get something smaller or worse.
Inflation is hidden in smaller packages – deflation
– Back deflation. I wonder how much chocolate will soon be in a chocolate bar – a few years ago the standard was 100g, then 95g, 90g, 85g, 80g, today you can even find 75g … and the size of the package is still the same – he wrote Last year, Pawe Jachowski of Wiadomości Handlowe.
In turn, Andrzej Piętka of Akademia Wypieków said in July of this year in the portal dlahandlu.pl that the phenomenon of deflationary deflation is common even in bread.
Manufacturers, with the imposed low purchase price, are trying to adapt to the needs of the sales department of the bakery. They come to the network with ready-made solutions. Then, at the poor-quality production stage, semi-finished products and components are used in order to save on raw material costs. Enhancers are replaced by “stronger”. what does that mean? He explained that we get the finished bread, for example bread or rolls, with a smaller amount of grams and a larger size.
German consumers are beginning to encounter this problem. As reported by Bloomberg – Germany They are angry about surreptitiously raising prices by reducing the base weight of products, for example. That’s what deflation is – Raised the price, but not directly. For this reason, Germany will flood the Consumer Protection Office with complaints.
Contraction in jelly beans example
What does deflation look like in specific German examples? The problem concerns, among others jelly (down by 14%), potato chips (change down by 20%), and in the case of margarine up to 25%. Hidden rise in shrinkage. After energy, food prices are the biggest driver for Germany inflation.
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See also: Banks raise interest rates. “I advise you to freeze savings on the deposit”
Food prices rose in July in Germany By 14.8% compared to the same month in 2021. Price increases were observed in all food groups. Edible fats and oils were much more expensive – at 44.2 percent. and dairy and eggs – by 24.2 percent. Similarly, in the other food groups there was a twofold increase in prices in the case of meat and meat products by 18.3%. On the other hand, the inflation rate in Germany was 7.5%. This is lower than in previous months.
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