Tesco and Morrisons hit by ‘shrinkflation’ as ready meals cut by 50g while prices go up
Move comes as UK inflation surges to 40-year high
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Your support makes all the difference.Tesco and Morrisons has been struck by ‘shrinkflation’ as it joins other supermarkets that have slimmed down the size of their products to tackle soaring costs.
A report has found that while ready meals are now smaller, the prices have not dropped accordingly and in some cases haveactually increased.
Tesco’s chicken jalfreziand Morrisons’ chicken korma dropped from 450g to 400 while the prices jumped from £2.75 to £3.49, research by The Grocer shows.
And Tesco’s sweet potato red Thai curry has been cut from 450g to 400g with a 5p price rise from £2.75 to £2.8.
The move follows a growing trend across supermarkets dubbed ‘shrinkflation’ where companies try to secure their profit margins amid the highest inflation in 40 years.
Asda and Sainsbury’s have also previously slimmed down their ready meal portions.
And Greggs has warned customers it may have to raise its prices again to keep up with rising costs.
The value bakery added between 5p and 10p to the price of products at the start of 2020 and brought in a further hike in May.
It said it had no choice but to make the move as ingredients had become more expensive amid soaring inflation.
Roisin Currie, Greggs chief executive, said soaring energy prices and “tough” market conditions meant the cost of pastries could increase again in the coming months.
“We know the economic environment is challenging and it is tough out there for our customers, so we are doing everything we can to protect our price proposition,” Ms Currie said.
The Resolution Foundation, a think tank focused on living standards, said it was now “plausible” that inflation could rise to 15 per cent – the highest level since 1980.
Low to middle-income families are likely to face disproportionately higher living cost levels for the foreseeable future, the foundation said.
It expects inflation to remain persistently high, despite some tentative signs that upward pressure on prices may be beginning to ease.
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