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    Boxes of cereal are displayed on a shelf

    'Shrinkflation' Playing Crucial Role in Rising Prices, Corporate Profits: Analysis

    "While shrinkflation is not new, it is arguably the most deceptive pricing practice companies use," reads the report.

    Julia Conley
    Mar 06, 2024

    Executives in corporate earnings meetings call it "price pack architecture," but economic justice advocates, Democrats in Congress, and in recent days, Cookie Monster of "Sesame Street" have a different term for companies' practice of reducing the weight or size of a product while charging the same amount for it: shrinkflation.

    Major corporations like PepsiCo and Utz have not only kept prices high even as pandemic era supply chain and labor issues have eased—a practice recognized as "greedflation"—but have also increasingly been reducing the size of products like snacks, drinks, and even essentials like toilet paper rolls, a new analysis from Groundwork Collaborative shows.

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    shrinkflation
    Rebecka Ortiz offers a sample of pasta to her 3-year-old daughter at the grocery store

    Analysis Shows How Corporate Profits Drive Inflation—Even as Business Costs Go Down

    "It's one thing for corporations to pass reasonable increased costs to consumers," said one analyst. "It's another for them to line their coffers by exploiting Americans who are just trying to get by."

    Julia Conley
    Jan 18, 2024

    Inflation has eased over the last two years, and with supply chains no longer struggling to keep up with demand and companies' business costs stabilizing, an analysis out Thursday asks: Why haven't American households seen the benefits of a more secure economy, with the prices of consumer goods and services falling?

    The answer, said economic justice think tank Groundwork Collaborative, is that high prices linked to the coronavirus pandemic were never just the result of higher labor and production costs—but were partially caused by corporations' deliberate price gouging.

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    corporate profits
    Pepsi sodas are displayed for sale at a Walmart

    Top US Companies Admit to Hiking Prices to Pad Their Profits: Analysis

    "After an unprecedented 10 interest rate hikes in a row, it's clear the corporate profiteering epidemic will persist no matter how many times the Fed doubles down," said Liz Zelnick of Accountable.US.

    Jake Johnson
    Jun 13, 2023

    An analysis released Tuesday shows that executives at some of the top publicly traded companies in the United States aren't exactly being coy about using their pricing power to hike costs for consumers and boost revenues and profits—which are then dished out to wealthy shareholders.

    The progressive watchdog group Accountable.US noted in its new report that "some of the largest general consumer S&P 500 companies have admitted to benefiting from increased prices as their net profits increased year-over-year and they rewarded shareholders with billions in handouts."

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