Accounting for Effect of Shrinkflation in Consumer Price Index

3 Ms Hazel Poa asked the Deputy Prime Minister and Minister for Trade and Industry whether the Department of Statistics accounts for the effect of shrinkflation in the Consumer Price Index (CPI), considering that some of the goods and services tracked in the CPI may not be sold based on standardised weights or sizes and, if so, how.

Mr Gan Kim Yong: In compiling the Consumer Price Index (CPI), the Department of Statistics (DOS) accounts for changes in the quantity or packaging size of the consumer items tracked in the CPI basket, where possible. It does so by adjusting the data based on a fixed unit of measurement, such as on a per 100g basis. For example, if the packaging size of an item changes from 100g to 80g but its store price remains unchanged, DOS will adjust the price so that the equivalent price increase per 100g will be reflected in the CPI.