Return to calm, finally! It is especially electricity which is still driving prices upwards as well as, more modestly, complementary health insurance. The food and hygiene-beauty sections are almost no longer increasing in supermarkets, at only 1% in April compared to April 2023. Overall annual inflation returned to a usual level this month, with an increase by 2.7%.
Prices have almost stabilized: over one month, they increased by 0.3%, at a slower pace than in February and March. However, these reassuring figures do not hide a persistent problem: annual inflation is at its lowest in more than 2 years… but prices have never been so high!
The announcement, by the Ministry of the Economy, of an upcoming decree to fight against “shrinkflation” (“reduflation”, in French) therefore comes late. This practice consists of reducing the quantity of product while maintaining or even increasing its price at the same time, which amounts to increasing the price per kilo, but in a way that is difficult for the consumer to perceive. These business practices “are authorized”recalls the ministry, but they are roundly criticized.
This is why Bruno Le Maire and Olivia Grégoire want “make it compulsory to inform consumers about the upward trend in the prices of products which have suffered a reduction in quantity”, from 1er next July. This information must appear in store “during the two months following the marketing date of the industrial food and non-food products concerned (bottles of soda, packets of rice, laundry detergent or cans, for example), whether they are national brand products or private label » and this, near said products. Prepackaged foods whose quantity may vary (deli section or by the cut) or sold in bulk are not affected.
However, this decree should not be very effective: this practice of shrinkflation seems to have remained marginal, despite the few cases exposed in the media. We had already tried to see clearly in 2022, without being able to highlight any massive drift, in a survey of several thousand products. Most of the time, in fact, these modifications are accompanied by recipe improvements (such as the removal of additives) or packaging changes (in favor of more recyclable materials, for example).
It is therefore difficult to highlight a contentious practice: a manufacturer would be very inconsistent to let the old weight appear on a “light” package! As for passing on the increase in raw materials and production costs, opposing it would be contrary to the freedom to trade. Finally, let us not forget that it is not the manufacturer alone who sets prices and volumes, but that it is the result of a negotiation with the distributor. The latter is informed of price changes per kilo (or per liter) and changes in packaging.
Methodology
What to choose evaluates the inflation rate month by month, based on its own observations. For nearly 40% of consumer spending, we have data allowing us to evaluate monthly price variations, based on our readings carried out in supermarkets (for food, drinks and hygiene-beauty), as well as on price offers taken from our price comparators (energy, fuel, mutual insurance, mobile plans, Internet service providers, home insurance, banks, household appliances). Each price is then weighted by purchase frequency and aggregated into an overall average.
For other expenditure items (rent, housing and transport expenses, hotels and catering, leisure, clothing and health), Que Choisir refers to INSEE evaluations.
Please note: by convention, price variations over a period (for example for the month of May 2023) are calculated in relation to the same period of the previous year (the month of May 2022). This is to avoid seasonal price movements (for example those of fruits and vegetables, which are very dependent on the season and harvest conditions).
 – Prices are finally stabilizing – News){kind=link}