The year of the ‘Flations’

The year of the ‘Flations’


A look back at 2023's pricing headlines

With inflation having major impacts on consumers, brands and supply chains this year, headline writers had a field day and coined several new terms for inflation-driven pricing and product changes. From greedflation to shrinkflation to drinkflation, a new ‘flation’ seemed to hit the headlines every month.

While the ‘flation stories were popular in 2023, they may not carry through to 2024, with the OECD forecasting that headline inflation is set to stabilize in the new year and gradually decrease to 5.2%.

Pop Culture and Economics

Despite these challenges, pop culture remained remarkably recession-proof. In Sweden, the allure of Beyonce contributed significantly to the country’s high national inflation. Meanwhile, the Barbie Boom captivated audiences, keeping retail and consumer brands vibrant throughout the summer months. As we step into the new year, the enthusiasm of pop culture fans shows no signs of waning. With Swifties willingly shelling out $500 per ticket, Taylor Swift’s upcoming tour is poised to make history as the highest-grossing of all time.

Businesses without the star power of icons like T-Swift, Barbie, or Queen Bey got creative with their pricing this year. We witnessed brands engaging in strategic pricing poker, experimenting with new approaches to uncovering and sustaining profits. Pint prices experienced surge pricing, membership pricing spiked, and brands such as Nike executed savvy price hikes, securing a financial slam dunk.

Maximizing Success in 2024

The resounding lesson from 2023 is that pricing complexity is the secret sauce of success. Maintaining strong and timely control over your pricing allows you to safeguard margins and optimize revenue. If elevating your pricing practices is one of your resolutions for the new year, speak to our team.

As we draw the curtains on 2023, we extend heartfelt gratitude to the brilliant people we met throughout the year. From the dynamic events like NRF, NAW, EPP, and The Professional Pricing Society to our new global customers, thank you for being part of our journey. Wishing everyone a festive holiday season from the entire team at Flintfox! Warmest holiday wishes to all pricing people.

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Until next time, power to you pricing people!

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