Cadbury has reduced the size of Dairy Milk sharing bars by 10%, passing the impact of soaring costs to customers as inflation continues to bite.

       Parent company Mondelez blamed an increase in production costs for the shrinking of its larger bars from 200g to 180g.

       The bars are still being sold at ￡2, despite the size reduction.

       We’re facing the same challenges that so many other food companies have already reported when it comes to significantly increased production costs

       Mondelez

       US-based Mondelez said the ‘shrinkflation’ – reducing the size of a product but keeping its price the same in order to improve profitability – was the first for Dairy Milk in a decade.

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       In 2012, a 49g bar was reduced to 45g but the price remained at 59p.

       Meanwhile, one year earlier, the 140g chocolate bar was reduced to 120g.

       It comes as the cost of living crisis gathers pace, with accelerating food inflation placing record pressure on UK households.

       Last week, Consumer Price Index (CPI) inflation struck a new 30-year-high of 6.2% for February; it is expected to soar beyond 8% in the coming months.

       The figures for February showed food inflation increased by 5.3% year-on-year, with prices of milk, fresh meat and coffee among the sharpest increases.

       A Mondelez spokesman said: “We’re facing the same challenges that so many other food companies have already reported when it comes to significantly increased production costs – whether it’s ingredients, energy or packaging – and rising inflation.

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       “This means that our products are much more expensive to make.

       “We understand that consumers are faced with rising costs too, which is why we look to absorb costs wherever we can, but, in this difficult environment, we’ve had to make the decision to slightly reduce the weight of our medium Cadbury Dairy Milk bars for the first time since 2012, so that we can keep them competitive and ensure the great taste and quality our fans enjoy.”