DTI Justifies ‘Shrinkflation’: Same Price, Less Product Weight


The Department of Trade and Industry (DTI) defended the reduction in the size of certain products, such as coffee, listed in its latest Suggested Retail Price (SRP) bulletin, stating that it is “justified” and considered a form of “price adjustment.” This practice, often referred to as “shrinkflation,” involves reducing the size or contents of a product while keeping its price tag unchanged.

Understanding ‘Shrinkflation


According to the report of ABS-CBN News, in the latest DTI SRP, nine brands of salt and coffee underwent price adjustments, with a reduction in weight accompanied by either a price decrease or no price change. DTI Consumer Protection Group Assistant Secretary Amanda Nograles explained on Teleradyo Serbisyo’s Pintig ng Bayan program that these adjustments were approved and deemed justified based on their computations. However, she emphasized that any size reduction must receive DTI approval and be clearly indicate on the product’s packaging.

“For coffee, if we look at it, the price remains the same, but we noted it as a price adjustment because they reduced the weight. Now, for these three items of coffee with different weights and brands, we allowed it because, based on our computation, their weight reduction was justified,” Nograles said. “Secondly, they proved in their packaging that they will release the new reduced weight. So, we have approved that. When it is implement in groceries and supermarkets, the DTI will monitor it,” she added.

DTI Reassures Public on Food Prices

Furthermore, Nograles pointed out that some product prices have not increased since 2018. She mentioned that the SRP bulletin consists of 271 items, with an additional 256 not included in the latest release. Out of over 500 items, only 63 SKUs have petitioned for a price increase.

Shrinkflation’ Explained

Regarding concerns about rising food costs, Nograles reassured the public that a variety of brands are available for basic goods. Allowing consumers to exercise their right to choose and find items that have not changed in price. She encouraged people to explore how they can align their purchases with their budget.

Once the DTI completes its review of petitions for price hikes, a new SRP is expected to be released, likely by March.

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