Shrinkflation, what is it?

When the cost of making a product increases, companies may choose to raise the price or decrease the quantity sold while keeping the price constant. This is called shrinkflation, according to the U.S. Bureau of Labor Statistics. To conceal the change in quantity, companies may also change the product size and packaging to make it appear more attractive to customers. Shrinkflation means that the size or amount of a product gets smaller while the price stays the same. This is considered a deceptive way for companies to keep making money while still making it look like they are giving customers the same value. For example, a chocolate bar that used to weigh 100g may now only weigh 80g, but the price remains the same. Shrinkflation is a way for companies to raise prices without making it obvious to customers right away since they are still paying the same amount for what looks like the same product. However, over time, consumers may notice that they are getting less for their money, which can erode trust and brand loyalty. To save money in the face of shrinkflation, consumers can:

1. 1. Check unit prices: Rather than just looking at the price of a product, consumers can also check the unit price (e.g., price per gram or price per liter). This allows them to compare products more accurately and make a more informed purchasing decision.

1. 1. Look for alternatives: Consumers can look for alternatives that offer better value for money, such as generic or store-brand products. They can also try buying in bulk or purchasing from discount retailers.

1. 1. Reduce consumption: Another option is to reduce consumption. Consumers can save money and benefit their physical and mental health by consuming less of a product.

Reducing the number of certain products you eat or drink can help your health in many ways. For example, your sugar intake will decrease if you eat or drink fewer sugary snacks or drinks. If you drink less alcohol, your liver will be healthier. A healthier relationship with food and less stress about money can also come from eating less.