As inflation has risen in recent months, customers are noticing another trend, “shrinkflation,” in which companies package their merchandise in such a way that they sell less product while maintaining the same price.
Steve Reed, an economist at the Bureau of Labor Statistics, explained the term to ABC News: “’Shrinkflation’ is a term used to describe implicitly increasing the price of an item by slightly decreasing the amount or quantity in a package … the conventional explanation would be that consumers may not notice small decreases in size or quantity or react less negatively to them compared to an explicitly higher price.”
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