The inflation rate in Germany was +7.4% in March 2023 compared to the same month last year. In January and February 2023 it was +8.7% each. The inflation rate has eased slightly, but remains at a high level. How prepared are consumers for a possible recession and which expenses do they reduce first during high inflation? This and more is examined in a new Capterra study with 1002 consumers from Germany on changing consumer behavior. The study was also conducted in France, Italy, Spain, the UK and the Netherlands. The full study methodology can be found at the end of the article.
Energy and food prices in particular have increased several times over. Food prices rose by 22.3% singapore telegram data March 2023 compared to the same month last year. However, price increases are not the only problem: our study participants also noticed reductions in product sizes and/or the scope of services, as well as a decline in their availability.
The phenomenon of shrinkflation
Most consumers (88%) notice that prices have increased. However, for an increasing number of items, there are hidden price increases: through a reduction in the size of a product or the scope of a service. Experts call this phenomenon "shrinkflation ". Almost a third of consumers have noticed this reduction. If we look at which product areas shrinkflation is most noticeable in, the food sector is clearly in the lead. In terms of services, this phenomenon is most observed in the area of entertainment and cultural activities (for example, streaming services, cinema, theater, museum, etc.). A reduction in product sizes or scope of services without communication causes annoyance among customers.