Shrinkflation expected to hit consumers this Christmas

Philippine Amalgamated Supermarkets Association Inc. president Steve Cua warned that 'shrinkflation,' where product sizes decrease while prices remain constant, is likely to impact consumers this Christmas season rather than direct price hikes.

Cua noted that commodity prices are not expected to increase significantly in December, despite inflation reaching 1.5 percent in August.

He explained that many product brands, including sardines, have already decreased in size and grammage.

However, supermarkets reported that the midterm elections failed to deliver an expected boost in spending due to intensifying competition, particularly from discounters like DALI and O! Save.

Cua added that money is being channeled into other areas like online gambling, impacting grocery sales.

He also mentioned that prices have been stable or even decreased for some essential items, with increases mainly on non-essentials.

Sufficient stock is anticipated for the holiday season, even with increased competition from discount chains.