DTI on ‘shrinkflation’: It’s manufacturers’ business decision

According to the Philippine Amalgamated Supermarkets Association, “shrinkflation” is when manufacturers alter the size and volume of their products to maintain current prices.

Jean Mangaluz

Jean Mangaluz

Philippine Daily Inquirer

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File photo provided by Philippine Daily Inquirer.

December 28, 2023

MANILA, Philippines — Manufacturers are free to change the size and price of their products amid the “shrinkflation” phenomenon, Department of Trade and Industry (DTI) Assistant Secretary Amanda Nograles said during the Bagong Pilipinas Ngayon public briefing on Wednesday.

According to the Philippine Amalgamated Supermarkets Association, “shrinkflation” is when manufacturers alter the size and volume of their products to maintain current prices.

“Malaya po kasi ang mga manufacturers na gawin iyan, it is their ultimately business decision po nila iyan na baguhin iyong produkto nila as to the size and as to the quality of the product,” said DTI

(Manufacturers are free to do that, it is ultimately their business decision to adjust their product as per the size and quality.)

Nograles explained that the DTI is primarily guarding basic necessities and prime commodities. It could only intervene when it comes to violations to the Price Act.

“Magiging violation iyan kapag nagkakaroon ng price manipulation iyong tinatawag nating profiteering – ibig sabihin noon, sobra-sobra naman iyong presyo ng item para doon sa true worth, iyong totoong value ng produkto,” she said.

(It becomes a violation if there is a price manipulation—which means that the price of the item is too much for its worth, the product’s real value.)

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