Reduflation, that this phenomenon does not harm your pocket

When making the supermarket, have you noticed that there are now smaller presentations of the same product? Let us tell you that it is not your imagination. In periods of high inflation, some companies create new presentations of lower grammage so that consumers resent price increases less strongly.

This phenomenon is known among economists as “invisible inflation or reduflation”, a concept attributed to the British-born economist Philippa ‘Pippa’ Malmgren. According to BBVA, reducing the quantity or number of units sold in the same container helps to increase the profit margin among manufacturers and reduce the impact of rising prices among consumers.

Despite the term being little known, more and more consumers are aware of the change and have assumed it as a way of coping with inflation, since it is a way of consuming favorite products for the same price or even less, or at least that’s the perception you have. According to data from the National Alliance of Small Merchants (Anpec), eight out of ten Mexicans have noticed a reduction in presentations.

“The fact that smaller presentations appear responds to the demand and need of buyers to reach a product with fewer resources, we see this phenomenon mainly in product segments such as beverages, bakery products, dairy products and sausages. For example, today there are packages of sausages from 36 to two units. People find smaller products that are not so expensive for them,” said Cuauhtémoc Rivera, president of Anpec.

Buying smaller products can be an option to complete your pantry, since if you do the shopping and it is not enough for the presentation you are used to, you can opt for a smaller weight. However, in the face of this phenomenon, it is best to pay attention to unit prices, since it is easy to get carried away by the initial price and not take into account the quantity of the product.

In an exercise carried out by this newspaper, it was found that some products such as cereal boxes that have different presentations registered a price increase of up to 30 percent. For example, when comparing the smallest presentation, 350 grams, with a cost of 35 pesos, with the medium size, 450 grams, the cost is 58 pesos, the difference is 100 grams between each box, but there is a disparity of 20 pesos.

However, if both presentations are compared with the larger one, 750 grams, it has a lower cost per gram. In other words, only the largest presentation represents savings, but if you had to decide whether to buy between the medium and small presentation, the smallest box is the one with the lowest price.

The effect of reduction has been an option to maintain the purchase of some favorite brands and products in the face of rising prices, according to the study carried out by Planning, 66% of Mexicans have resorted to new brands or presentations with lower prices .

To prevent reduflation from shrinking your pocket, it is best to make planned purchases. If you already have a supermarket list, start comparing the prices offered by the brands in their different presentations, check the price per kilo and per unit, and Whether it is purchased by the piece, the smallest presentation or even if you opt for wholesale, this will allow you to know which option really costs less.

Having a greater number of presentations can be an alternative to buying only the necessary amount, before buying analyze the amount you require against its expiration date, this will avoid food waste. Finally, remember that you can always try new brands that are more favorable to your budget.

A worldwide phenomenon

Previously, the company specializing in consumer intelligence, Nielsen IQ, explained that downsizing is a strategy that companies around the world are applying, because upward pressure on inflation is a global phenomenon.

Nielsen IQ warned that producers will continue with these strategies and could even create new models that allow brands to stay in consumers’ shopping carts.

joselyn.ugarte@eleconomista.mx