Shrinkflation

Shrinkflation is the practice of reducing the size or quantity of a product while keeping its price the same, resulting in a higher cost per unit for consumers. It is a form of price adjustment used by manufacturers to pass rising costs on to shoppers without raising the visible price tag. The term has become common in consumer and economic discussions as firms look for ways to preserve margins when input prices or taxes increase.

Common methods include shrinking net weight, reducing the number of items in a package, or switching to lighter packaging while keeping the label price unchanged. Products affected span food, beverages, household goods, and personal care items. Examples cited in media and analysis include chocolate bars that weigh less, breakfast cereals in smaller boxes or bags, and toilet paper or paper towels with fewer sheets per roll. The strategy can be hard to detect because the price appears unchanged, especially when packaging updates accompany the change.

Consumer advocates argue shrinkflation misleads shoppers and diminishes perceived inflation, while critics say it reflects legitimate attempts to manage costs without overt price hikes. Regulators in several jurisdictions require transparent labeling of net contents and unit pricing, and some advocate stronger rules against deception in packaging. Economists note that shrinkflation complicates inflation measurement, since published price indices may obscure changes in quantity. Overall, shrinkflation remains a common response to rising costs and a subject of ongoing debate about consumer transparency and regulation.