Value Deflation

Value Deflation

Value deflation is a term used to describe the practice where retailers reduce the amount, weight, quantity or quality of a product while keeping prices the same. Some producers use value deflation to account for rising production costs (offering less for the same price); others use cheaper inputs (offering lower-quality products for the same price); others still use it as a ‘hidden’ profiteering technique. Because end-buyers may be unaware of the change, it is often seen as sneaky behaviour.

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