Connect with us

News

How to fight shrinkflation? Pay attention to unit prices at grocery stores

Published

on

How to fight shrinkflation? Pay attention to unit prices at grocery stores

Boxes of cereal are displayed on a shelf at a Target store in July 2022 in San Rafael, Calif. Manufacturers are using “shrinkflation” techniques as costs to produce goods increase. Some are making the packaging smaller but charging the same prices as they were prior to the reduction in size.

Justin Sullivan/Getty Images


hide caption

toggle caption

Advertisement

Justin Sullivan/Getty Images

In a recent episode of Planet Money, we dove into the wild world of package sizes. Tiny Coke cans. Family-size cereal. Travel-size deodorant. Jumbo-size peanut butter jars. Companies have figured out that by fiddling with package sizes, they can squeeze more money out of us. The practice is known in the biz as “price pack architecture,” and as we reveal in the episode, it’s really taken off over the last couple decades.

Today in the Planet Money newsletter: how consumers can fight back and defeat these packaging gimmicks.

But, before we get to that, we should say some forms of price pack architecture may actually be good for consumers. For example, maybe I don’t want a whole gallon of chocolate milk. I won’t drink it all before it goes sour. It’s great I can just buy a quart. More consumer choice for the win!

Advertisement

But, there’s also a dark side to price pack architecture. Given you’re reading this newsletter — and given that the president of the United States mentioned it in this year’s State of the Union speech — you might have heard about perhaps the most famous and devious form of it: shrinkflation. It’s a sneaky form of inflation, where, instead of just raising prices, companies shrink the amount of stuff they provide in packages.

Shrinkflation is really inflation in a literal sense. It means the price per unit — for example, a dollar per ounce or 2 cents per Cheeto — goes up. You get less product for your buck.

With all these package sizes — and changes to package sizes — it might seem like we’re destined to be on the losing end of intricate packaging strategies that enable companies to extract more money from us. But, luckily, there’s a relatively simple way to see through the fog of packaging gimmicks and spot the best deal: pay attention to unit prices!

For example, if you are trying to decide whether to buy that “family size” box of Cocoa Puffs, the “giant size” box, or just a regular box, look at the price per ounce. At many stores across the country, the price tag conveniently includes this number. It’s a standardized measure that makes shopping for the best value easier. Sometimes stores do this voluntarily. And sometimes the government forces them to do it.

Many stores, however, do not post this number. There’s no federal legislation mandating that stores do it. It’s been left up to the states. According to the National Institute of Standards and Technology, a federal agency, 19 states have enacted unit pricing laws or regulations. And, of those, only nine states mandate that stores provide consumers with this information.

Advertisement

New Jersey is one of the states that requires stores to display unit prices — and they apparently take this requirement very seriously. Last month, New Jersey regulators fined Walmart over $1.5 million after inspectors found more than 2,000 inaccuracies in displayed unit prices at New Jersey stores.

“As the price of grocery items continues to rise, it’s more important than ever to ensure consumers have all the information they need — and are entitled to by law — to make educated decisions on how to spend their money,” said New Jersey Attorney General Matthew Platkin. “New Jersey will not allow retailers to engage in unlawful pricing practices that deny shoppers the ability to easily compare prices to figure out which product is a better buy.”

Consumers seem to appreciate when stores provide them with (accurate) unit prices. The Food Marketing Institute found that 78% of consumers use unit prices if they’re displayed. However, they’re still not available at many stores around the country.

If you live in one of the dozens of states where stores aren’t required to post unit prices and the store you’re shopping at doesn’t voluntarily do it, there’s still a solution. However, we’ll admit, it’s more annoying: bring your calculator (or, more realistically, just use your smartphone). Take the total price, the amount that’s in the package, and then divide. Boom, you have the unit price. Do it again for another product, and now you can do an apples-to-apples comparison to help figure out what’s the best value.

If using a calculator is too inconvenient or nerdy for you, well, then maybe talk to your elected representatives about enacting policies that encourage stores to post unit prices. Then you won’t have to do math.

Advertisement

News

Map: 4.9-Magnitude Earthquake Shakes Louisiana

Published

on

Map: 4.9-Magnitude Earthquake Shakes Louisiana

Note: Map shows the area with a shake intensity of 4 or greater, which U.S.G.S. defines as “light,” though the earthquake may be felt outside the areas shown.  All times on the map are Central time. The New York Times

A light, 4.9-magnitude earthquake struck in Louisiana on Thursday, according to the United States Geological Survey.

The temblor happened at 5:30 a.m. Central time about 6 miles west of Edgefield, La., data from the agency shows.

U.S.G.S. data earlier reported that the magnitude was 4.4.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Advertisement

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Central time. Shake data is as of Thursday, March 5 at 8:40 a.m. Eastern. Aftershocks data is as of Thursday, March 5 at 10:46 a.m. Eastern.

Continue Reading

News

Donald Trump has no ‘phase two’ plan for Iran war, says US senator

Published

on

Donald Trump has no ‘phase two’ plan for Iran war, says US senator

To read this article for free

Register now

Once registered, you can:

• Read free articles
• Get our Editor’s Digest and other newsletters
• Follow topics and set up personalised events
• Access Alphaville: our popular markets and finance blog

Continue Reading

News

Man accused of plot to assassinate Trump testifies Iran pressured him, says Biden and Haley were other possible targets

Published

on

Man accused of plot to assassinate Trump testifies Iran pressured him, says Biden and Haley were other possible targets

The allegation sounded like the stuff of spy movies: A Pakistani businessman trying to hire hit men, even handing them $5,000 in cash, to kill a U.S. politician on behalf of Iran ‘s powerful paramilitary Revolutionary Guard.

It was true, and potential targets of the 2024 scheme included now-President Donald Trump, then-President Joe Biden and former presidential candidate and ex-U.N. Ambassador Nikki Haley, the man told jurors at his attempted terrorism trial in New York on Wednesday. But he insisted his actions were driven by fear for loved ones in Iran, and he figured he’d be apprehended before anything came of the scheme.

“My family was under threat, and I had to do this,” the defendant, Asif Merchant, testified through an Urdu interpreter. “I was not wanting to do this so willingly.”

Merchant said he had anticipated getting arrested before anyone was killed, intended to cooperate with the U.S. government and had hoped that would help him get a green card.

U.S. authorities were, indeed, on to him – the supposed hit men he paid were actually undercover FBI agents – and he was arrested on July 12, 2024, a day before an unrelated attempt on Trump’s life in Butler, Pennsylvania.  During a search, investigators said they found a handwritten note that contained the codewords for the various aspects of the plot, CBS News previously reported

Advertisement

Merchant did sit for voluntary FBI interviews, but he ultimately ended up with a trial, not a cooperation deal.

“You traveled to the United States for the purpose of hiring Mafia members to kill a politician, correct?” Assistant U.S. Attorney Nina Gupta asked during her turn questioning Merchant Wednesday in a Brooklyn federal court.

“That’s right,” Merchant replied, his demeanor as matter-of-fact as his testimony was unusual.

The trial is unfolding amid the less than week-old Iran war, which killed Iranian Supreme Leader Ayatollah Ali Khamenei in a strike that Trump summed up as “I got him before he got me.” Jurors are instructed to ignore news pertaining to the case.

The Iranian government has denied plotting to kill Trump or other U.S. officials.

Advertisement

Merchant, 47, had a roughly 20-year banking career in Pakistan before getting involved in an array of businesses: clothing, car sales, banana exports, insulation imports. He openly has two families, one in Pakistan and the other in Iran – where, he said, he was introduced around the end of 2022 to a Revolutionary Guard intelligence operative. They initially spoke about getting involved in a hawala, an informal money transfer system, Merchant said.

Merchant testified that his periodic visits to the U.S. for his garment business piqued the interest of his Revolutionary Guard contact, who trained him on countersurveillance techniques.

The U.S. deems the Revolutionary Guard a “foreign terrorist organization.” Formally called the Islamic Revolutionary Guard Corps, the force has been prominent in Iran under Khamenei.

Merchant said the handler told him to seek U.S. residents interested in working for Iran. Then came another assignment: Look for a criminal to arrange protests, steal things, do some money laundering, “and maybe have somebody murdered,” Merchant recalled.

“He did not tell me exactly who it is, but he told me – he named three people: Donald Trump, Joe Biden and Nikki Haley,” he added.

Advertisement

In 2024, multiple sources familiar with the investigation told CBS News Merchant planned to assassinate current and former government officials across the political spectrum.

Merchant allegedly sketched out the plot on a napkin inside his New York hotel room, prosecutors said, and told the individual “that there would be ‘security all around’ the person” they were planning to kill.

“No other option”

After U.S. immigration agents pulled Merchant aside at the Houston airport in April 2024, searched his possessions and asked about his travels to Iran, he concluded that he was under surveillance. But still he researched Trump rally locations, sketched out a plot for a shooting at a political rally, lined up the supposed hit men and scrambled together $5,000 from a cousin to pay them a “token of appreciation.”

This image provided by the Justice Department, contained in the complaint supporting the arrest warrant, shows Asif Merchant. 

Advertisement

AP


He even reported back to his Revolutionary Guard contact, sending observations – fake, Merchant said – tucked into a book that he shipped to Iran through a series of intermediaries.

Merchant said he “had no other option” than to play along because the handler had indicated that he knew who Merchant’s Iranian relatives were and where they lived.

In a court filing this week, prosecutors noted that Merchant didn’t seek out law enforcement to help with his purported predicament before he was arrested. He testified that he couldn’t turn to authorities because his handler had people watching him.

Prosecutors also said that in his FBI interviews, Merchant “neglected to mention any facts that could have supported” an argument that he acted under duress.

Advertisement

Merchant told jurors Wednesday that he didn’t think agents would believe his story, because their questions suggested “they think that I’m some type of super-spy.”

“And are you a super-spy?” defense lawyer Avraham Moskowitz asked.

“No,” Merchant said. “Absolutely not.”

Continue Reading

Trending