When Prices Rise and Products Shrink: How Inflation Alters Consumer Preferences

According to the US Inflation Calculator, inflation in the 12 months up to April 2023 was 4.9%. This is a slight decrease on the 2022 annual inflation rate of 6.6%.

The impact of inflation is clear to see for shoppers who are adapting purchasing behavior to limit financial challenges. For many, it seems the effects of inflation on consumers are intensifying.

The U.S. Bureau of Labor Statistics reports the Consumer Price Index for April 2023 rose 0.4% after a 0.1% increase in March. This data shows shoppers have less to spend on essential items due to the impact of inflation and shrinkflation.

The shock of shrinkflation

However, it’s not just rising prices and inflation that are creating stressful shopping conditions for Americans. Reduced product sizes (shrinkflation) are also affecting consumer shopping habits, with shoppers buying items at their normal price but ending up with a smaller product.

Shoppers are buying what they need but it isn’t going as far as it used to. Survey respondents stated that they are selecting cheaper, larger items to get by.

How is inflation affecting consumer choices?

In March 2023, PissedConsumer.com surveyed 400 U.S. consumers of different ages, genders, and backgrounds to find out how inflation is influencing their consumer preferences:

• 94.5% found inflation impacts their shopping habits.

• 76.5% noticed price gouging on groceries.

• 94.3% saw an increase in egg prices.

• 33.6% said Walmart is the cheapest store, 46.3% thought Whole Foods was the most expensive.

  
  

Consumers notice price increases

Shoppers are running into price rises everywhere they look, so it’s a real challenge to maintain standards and buy essential items. Some consumers are leaving online reviews about significant price hikes, such as this Papa Murphys’ shopper:

“Today I bought a pizza I've been paying $14 for at $19. This is a $5 or 35% increase in price. I think they are simply trying to take advantage and blame inflation.”

Maximizing the power of the reviews website, Walmart shoppers are also leaving comments about price rises to their favorite products over a short time period:

“WALMART has increased its prices dramatically on food items. For example, their GREAT VALUE 16 oz. peanuts went from $1.98 to $2.28, now they are $2.44-up over 42%!”

Shrinkflation concerns shoppers

More and more consumers are recognizing the tell-tale signs of shrinkflation affecting the size and nature of their products. Store shoppers are leaving online reviews to talk about this issue, including this Nabisco customer:

“Today I purchased a family sized package of lemon Oreos. When I got home there were noticeable gaps in each of the trays … large enough for 10 cookies!”

Another consumer review reports that bottles they bought in The Epoxy Resin Store had been reduced in volume:

“There is probably 20 ounces missing in each bottle.”

How are consumers coping?

Consumers are cutting back on those splash-out items, eating out less, and considering fewer trips. But they are saving for that feel-good splurge to keep them feeling great to maintain their lifestyle as much as possible.

Shoppers need to keep their loved ones healthy with groceries and small extras to help in challenging times. Many consumers are trading down, buying bargain brands, and purchasing less to keep their finances in check.

One way consumers can stay ahead of the curve is to check online review websites to ensure they can pick up any coupons, money off items and discover stores that are keeping prices in check.