I’m not sure how annoyed to be about the smaller packaging phenomenon in stores called shrinkflation.
Rising prices are everywhere these days and we’re all starting to feel some inflation exhaustion. Shrinkflation is when a company cuts the size of its product to keep costs in line. You get less instead of having to pay more.
A recent Associated Press story published on the Globe and Mail website offered a perfect example of shrinkflation: One box of Kleenex with 65 sheets and another with 60 sheets. It’s a clear case of inflation getting right up in your face.
Where I’ve noticed shrinkflation is in breakfast cereal. Some cereal boxes these days are laughably thin – I doubt a hungry teenager gets more than a few servings.
Shrinkflation is inflationary pricing by stealth. It’s near impossible to track precisely because few of us have old packages of grocery items available to compare to those we’re buying now. Still, I wonder if there’s a positive side to shrinkflation. OK, a modestly positive side.
For one thing, you’re not assaulted with yet another supermarket price hike. A little price stability on things you buy often is a welcome development with overall inflation running at 6.8 per cent. Also, there’s an opportunity to make up for smaller packaging by consuming less of a product. Finally, getting a bit less for your money isn’t always a bad thing. One less chicken and cheese tacquito might actual be a net plus for your health.
I’d love to see any photos you have documenting shrinkflation – send them to me at rcarrick@globeandmail.com. I also want to hear your views on shrinkflation. Would you rather the clarity of a straight price increase, or the more subtle approach of smaller packaging?
I did a little research for this newsletter in our cereal cupboard and found something interesting. Sometimes, a bigger box doesn’t mean you’re getting more. Both of these boxes have the same 311 grams, but one’s quite a bit larger. BTW, Oreo O’s are great. Better than the cookie.
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Rob’s personal finance reading list
Behind the scenes on home makeover shows
Admit it, you’ve watched TV shows where a team of designers and contractors descend on a home, gut it and then rebuild it better than ever. The New York Times reports on how that better than ever part doesn’t always work out.
Scene+ vs. Air Miles
RewardsCanada.ca on this week’s big developments in customer loyalty programs for people who shop at the grocery and drugstore chains owned by Empire Co., including Sobeys, Safeway, FreshCo and IGA. Say goodbye to Air Miles and hello to Scene+.
Attention, recession preppers
Solid advice on how to prepare in case the fight against inflation pushes the economy into recession. Aimed at a U.S. audience, but is quite relevant to us all.
Crypto critic cites predatory behaviour
Molly White is a 28-year-old software engineer who writes Wikipedia articles. She’s also a leading voice among people who are skeptical of some of the claims being made about cryptocurrency. “Most of my disdain is reserved for the big players who are marketing this to a mainstream audience as though it’s an investment, often promising to be a ticket out of a really tough financial spot for people who don’t have many options,” White says. “It’s very predatory.” Here’s some additional information on crypto scamming.
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Today’s financial tool
Ontario’s Ukrainian Credit Union is offering no-fee bank accounts, debit cards and credit cards to Ukrainians taking refuge in Canada from the war in their country.
The Money-Free Zone
Here’s a cult favourite from 1969 – Spirit of the Golden Juice, by F.J. McMahon. A laid-back country-rock-blues mix that feels just right. BTW, the golden juice is a reference to bourbon. A good starting point is the first song on the album, Sister Brother.
Watch this
A portfolio manager looks at the benefits of using a ladder of guaranteed investment certificates as opposed to bond ETFs. His analysis hinges on the fact that rising interest rates have hurt the price of exchange-traded funds holding bonds.
Has inflation derailed your financial plan?
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In case you missed these Globe and Mail personal finance-related stories
- Is it possible to challenge the orthodoxy of ESG without getting cancelled?
- Some restaurants are abandoning tipping in favour of paying their staff higher wages.
- Are ‘we will buy your house for cash!’ flyers too good to be true?
More Rob Carrick and money coverage
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Even more coverage from Rob Carrick:
- 🎧 Catch up on Stress Test: Is the middle class dead for millennials and Gen Z? • Gas prices are soaring. Are electric vehicles an affordable solution? • Crypto is booming, but should you invest? • How are young Canadians dealing with soaring rents? • Inflation is squeezing our finances. What can we do about it? • Is a hot housing market squeezing Canadians out of their small towns?
- ✔️ The housing file: How bad is housing affordability? Even a crash won't help • Sell the family home to lock in profit and then rent? Better not • Why young adults can't afford houses: Hard work got you more in the past than it does now • Five reasons you should not buy a house till you're at least 30 • Now more than ever, owning a house is not a retirement plan
- 📈 Investing: The 2022 ETF buyer's guide: Best Canadian equity funds • The 2022 Globe and Mail digital broker ranking: Does the zero-commission revolution flip the script on who's best? • With bonds sinking, conservative investors are waking up to risks they never saw coming • A five-step plan for dealing with the sad fact that almost every investment is falling lately • The best financial advice in advance of retirement? Work on your marriage • One-year GICs are the best deal in town for safety seekers • What to do if the financial plan you paid thousands for disappoints
- 💰 Your money: Are you prepared for the pandemic wealth boom to blow up in our faces? • This hard-working 24-year-old is nailing it financially. But where's the happiness? • Who should and shouldn't worry about the wave of rate increases this year, and what every stressed-out borrower should do right now • Don't make this potentially costly assumption about the CPP Survivor's pension
Are you reading this newsletter on the web or did someone forward the e-mail version to you? If so, you can sign up for Carrick on Money here.
Rob Carrick