February 24, 2024 12:36 pm
Joe Biden condemns snack manufacturers for ‘shrinkflation exploitation’ | American economy

In the US, consumer price inflation has been rising rapidly in recent years, with the index surpassing 8% in 2022. Some economists attribute this increase to various factors such as monetary policy in response to the pandemic, increased energy prices due to Russia’s invasion of Ukraine, and significant government spending. In response to these rising costs, companies are believed to be reducing product sizes and altering recipes to use less expensive ingredients, a practice known as “skimpflation.”

In a video released during the Super Bowl, President Joe Biden criticized food companies for “shrinkflation,” accusing them of making products smaller while keeping prices the same. He referred to this as a “rip-off” and stated that the public is tired of being deceived. The president highlighted examples of products that have been reduced in size without a reduction in price, including Gatorade, Breyers ice-cream, Tostitos and Doritos crisps, and Oreo cookies.

The Super Bowl is a highly anticipated event in the US that attracts a large audience and provides an excellent advertising opportunity for companies. Despite declining a television interview typically conducted with the president before the game, Biden’s video would have made uncomfortable viewing for some of the biggest food companies such as PepsiCo, Mondelēz, and Unilever. Although Biden did not directly name any products or companies

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