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Raising the price in a visible way comes with a higher cost (risk that consumers will stop buying your product/pick a competitor). Doing it in a hidden way thro
by tgsovlerkhgsel 3y ago
Raising the price in a visible way comes with a higher cost (risk that consumers will stop buying your product/pick a competitor). Doing it in a hidden way through shrinkflation means many consumers don't notice, making it easier for companies to raise prices.
As the act explains, it actually is Coca-Cola's and Heinz' fault that some of the inflation exists, because some of it is just them raising prices to make more profit.
Requiring price increases to be done "openly" will likely reduce inflation, by discouraging price increases.