RBA Could Sit It Out in July to Await Greater Clarity on CPI Outlook
Money markets have fully priced in a further reduction in the OCR, with traders seeing recent inflation data as a clear signal that the RBA has scope to cut again, and pointing to more reductions later in the year.
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Yahoo
20 minutes ago
- Yahoo
Inflation Is Cooling. Shrinkflation? It's Alive and Well.
Inflation helped companies justify price increases, but now that it's cooling many companies are trimming the amount of product sold in packages, according to Finn Hansen, CEO of London-based price consultancy PriceBeam. This sort of "shrinkflation" has rankled consumers for years, but may become more prevalent if tariffs become more impactful, Hansen said. Companies have been rolling out smaller packages for other reasons, including appealing to those who want to avoid waste or have more portion control, experts a few years ago, a five-pack of snack-sized candy bars cost $1 at a Brooklyn dollar store. As inflation heated up, that rose to $1.25. That price is still in place—but the Heath bars come in a four-pack now. Hershey's (HSY), maker of Heath, York peppermint patties, Reese's, Kit Kat and other candies, is hardly the only company curbing how many goodies you get for your dollar. 'Shrinkflation'—in short, when companies shrink the volume in a package, but charge the same amount for it—continues to spread through stores, experts say. Inflation has moderated, according to recent data, rising less dramatically than seen during the highs of the pandemic, though some experts think tariffs could inflame it again. Meanwhile, according to Finn Hansen, CEO of London-based price consultancy PriceBeam, companies are having a harder time justifying price increases by saying they're paying more for supplies and merchandise—and so they're tweaking proportion instead of price, which can be less obvious to shoppers. 'If your favorite brand is going up in price, you notice,' Hansen said. But if a package that once held 5.5 ounces now holds 5, he added, 'you may or may not notice.' Shrinkflation hit a recent peak in June 2024, according to a log of how often consumer-price index researchers noticed "downsized" packages. Although they've found fewer examples in recent months, the CPI team's observations also show that the number of "upsized" products has fallen off since 2019. Shrinkflation became a hot topic during the pandemic, when inflation soared and rising prices were top of mind. Articles published in 2022 documented tissue boxes with fewer tissues, shampoo bottles with less shampoo, and bags of chips that held fewer chips. Merriam-Webster added 'shrinkflation' to its dictionary that year; lawmakers drafted legislation targeting the practice, while late-night comedy hosts weighed in on it. The phenomena continues to irk consumers, including the thousands documenting suspected downsizing on Reddit's Shrinkflation forum, which is filled with side-by-side comparisons of old and new packages, photos of products on kitchen scales and debates about the impetus for recipe changes. 'Me hate shrinkflation! Me cookies are getting smaller,' the puppet known as Cookie Monster wrote on X in 2024. 'Guess me going to have to eat double da cookies!' Companies know downsizing has its downsides, publicity-wise. It's not a word executives use much, according to a review of earnings conference calls. They have, however, been talking frequently about changing products' "price pack architecture." That term can cover downsizing, but also other changes, such as reshaped bags, boxes, cans and bottles and completely new product sizes. 'One of the benefits of price pack architecture… is it's not a direct price point increase, but rather it's kind of a combination of sizing and price, which can tend to offer perhaps a better value perception for consumers,' Hershey CEO Michele Buck said during a May conference call, according to a transcript made available by AlphaSense. Hershey didn't respond to Investopedia's requests for comment. Sara Lee launched a 12-slice 'half loaf' of bread this spring. 'We understand that many customers in smaller households want to enjoy fresh, delicious bread without worrying about the waste,' the brand said in a press release. "With our new Half Loaves, we're delivering just that.' Companies have several reasons to introduce smaller pack sizes that are unrelated to driving up the price per unit, retail experts said. Some shoppers prefer compact cases of cookies, chips and other 'guilty pleasures' to help with portion control, said Ellen Kan, partner at consulting firm Simon-Kucher; this may appeal in particular to those on GLP-1 appetite suppressants, she said. To-go sizes and individually wrapped portions are popular in busy households and with younger consumers trying to avoid waste, said Lauren Beitelspacher, professor of marketing at Babson College. Companies also believe that selling smaller packages at lower overall prices—even if they cost more per unit—can help keep products feeling affordable to those on a budget, experts said. And they can offer a less-expensive entry point for people curious about new flavors. Executives are thinking 'how can I preserve affordability in the portfolio even as inflation has continued to accelerate?' Kan said, calling this 'a driving factor' in the surge in smaller pack sizes. Still, some of the larger consumer-packaged goods companies may have exhausted their ability to simply raise prices, whether through traditional price hikes or by shrinking packages, Hansen said. Companies are reluctant to tell investors ''Well, we didn't meet our volume expectation; we didn't meet our general sales expectation, but we managed to push price, so therefore, we are still saving the bottom line,'' Hansen said. 'They're a bit worried.' Read the original article on Investopedia Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
22 minutes ago
- Bloomberg
ECB Risks 2% Undershoot If Euro Strength Persists, Villeroy Says
The European Central Bank is at greater risk of undershooting its inflation target following a sharp appreciation of the exchange rate, Governing Council member Francois Villeroy de Galhau said. Policymakers can't adopt an approach of 'benign neglect' after gains of the magnitude seen since the start of the year, the Bank of France Governor said in an interview with Bloomberg Television on the sidelines of a conference in Aix-en-Provence, France.
Yahoo
32 minutes ago
- Yahoo
Rise in Popularity of Liquid Detergents and Pods, Intense Market Competition and Price Sensitivity
Key opportunities in the Australia laundry detergent market include catering to hygiene-conscious consumers with eco-friendly, plant-based, and hypoallergenic products, capitalizing on the trend towards liquid detergents and pods for convenience, and appealing to premium and specialized product preferences among urban populations. Australian Laundry Detergent Market Dublin, July 04, 2025 (GLOBE NEWSWIRE) -- The "Australia Laundry Detergent Market, By Region, Competition, Forecast & Opportunities, 2020-2030F" has been added to offering. The Australia Laundry Detergent Market was valued at USD 1.03 Billion in 2024, and is expected to reach USD 1.35 Billion by 2030, rising at a CAGR of 4.67%. Growth is being driven by increased consumer focus on hygiene, sustainability, and convenience. Environmentally conscious consumers are increasingly opting for eco-friendly, plant-based, and biodegradable products, fueling demand for green alternatives. The market is also evolving with the introduction of concentrated liquid detergents, pods, and hypoallergenic formulas that cater to specific skin sensitivities. A shift toward premium and specialized products - such as fragrance-free or dermatologically approved variants - reflects rising expectations for both performance and safety. At the same time, evolving laundry habits, particularly among younger and urban populations, are influencing product format preferences and driving innovation in the detergent category. Key Market Drivers Rising Consumer Awareness of Hygiene and Health Heightened hygiene awareness, particularly following the COVID-19 pandemic, has become a major catalyst for growth in the Australia laundry detergent market. Consumers are prioritizing cleanliness and fabric care, increasing the demand for products that offer deep cleaning and antibacterial protection. This trend is particularly strong in households with children, elderly members, or individuals with sensitive skin, where the preference leans toward gentle, dermatologically tested formulas. Labels highlighting properties such as "suitable for sensitive skin" or "antibacterial" are gaining consumer trust. The overall shift toward health-focused product choices is reinforcing the need for effective yet safe laundry solutions across all demographics. Key Market Challenges Intense Market Competition and Price Sensitivity The Australian laundry detergent market is highly competitive, with major global players like Procter & Gamble, Unilever, and Henkel contending alongside domestic brands such as Earth Choice and Natures Organics. This competitive environment leads to continuous price wars, promotional offers, and the proliferation of private-label products from retailers like Woolworths and Coles. Many consumers remain cost-conscious, especially in light of inflationary pressures, leading them to prioritize affordability over brand loyalty or eco-credentials. This puts pressure on manufacturers to offer innovation without significant cost increases, posing a challenge to the widespread adoption of premium or sustainable alternatives in a price-sensitive market. Key Market Trends Rise in Popularity of Liquid Detergents and Pods A notable trend in the Australia laundry detergent market is the growing shift from powder to liquid detergents and pre-measured pods. These formats are perceived as more convenient, user-friendly, and compatible with modern washing machines, particularly high-efficiency front-loaders. Pods, in particular, are gaining traction for their ease of use, precise dosing, and reduced mess. These attributes resonate with time-pressed consumers and families looking for a streamlined laundry routine. Additionally, the sleek packaging and concentrated formulations of pods often align with premium positioning, further enhancing their appeal among younger and urban consumers seeking efficiency without sacrificing performance. Key Attributes: Report Attribute Details No. of Pages 81 Forecast Period 2024 - 2030 Estimated Market Value (USD) in 2024 $1.03 Billion Forecasted Market Value (USD) by 2030 $1.35 Billion Compound Annual Growth Rate 4.6% Regions Covered Australia Report Scope Key Market Players The Procter & Gamble Company Unilever plc The Clorox Company Method products PBC Lion Corporation Kao Corporation S. C. Johnson & Son, Inc. Henkel AG corporation KGaA Church & Dwight Co. Inc. Reckitt Benckiser Group PLC Australia Laundry Detergent Market, By Product Type: Detergent Powder Laundry Liquid Fabric Softener Others Australia Laundry Detergent Market, By Sales Channel: Supermarkets & Hypermarkets Departmental Stores Online Others Australia Laundry Detergent Market, By Region: Australia Capital Territory & New South Wales Northern Territory & Southern Australia Western Australia Queensland Victoria & Tasmania For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. Attachment Australian Laundry Detergent Market CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900Sign in to access your portfolio
