HUL's results show that people have been downtrading and not downgrading. Both downtrading and downgrading are consumer responses to inflation. The first is when consumers pick smaller volume packs, and the second is when they pick cheaper brands. Downtrading can intensify shrinkflation, which is when brands do not increase prices with inflation, but reduce their pack sizes and keep the prices steady. Consumer staples brands do this because they know that their consumers are sensitive to a price level–like Rs 5 for a packet of biscuit–which is called the magic price point.