Home Consumer How Companies Are Hiding Inflation Without Charging You More

How Companies Are Hiding Inflation Without Charging You More

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In the past several days, several publications have posted about Shrinkflation.  Below is an excerpt from Quartz.  A google search will turn up similar reports from Business Insider, The Express Tribune, and The Daily Mail, to name a few. If you’re a Reddit user you can see the postings here.

Here is a link to a Bloomberg video.

On your next trip to the supermarket, check out the size of your favorite products. You may be in for a surprise.

By Clarisa Diaz, Things Reporter, Quartz

Faith Based Events

Do consumers notice when their everyday products get smaller? Often they don’t and companies are taking advantage by reducing the amount of product they sell while keeping prices the same. Shrinking product sizes to pad profits is not a new tactic but it grows in popularity during periods of shortages and inflation. Some consumers are noticing and documenting their shrinking groceries on the shrinkflation subreddit.

Even with today’s release of US inflation figures from the Bureau of Labor Statistics showing prices increased 7.9% in the last 12 months, consumers may not realize they’re paying more for some of their regular purchases because companies are reducing sizes while keeping prices the same.

What is the meaning of shrinkflation

Downsizing a product while keeping its price the same is sometimes called “shrinkflation”—a combination of the words shrink and inflation. Companies face higher prices for their supplies and may try to pass that on to the consumer. Downsizing a product reduces costs for manufacturers.

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