We’ve heard about inflation this year as the price of homes, cars, and food soars. But another term is suddenly being used more and more, shrinkflation.
The headlines say it all, “consumer prices jumped 5% in May.” “U.S. inflation is highest in 13 years.”
Between groceries and $3 gas, we are all paying more. The Bureau of Labor Statistics says year to year gas prices are up 52%, airline tickets are up 24%, home prices are up 15%, hotel rooms up 7%, clothing up 3%, and used cars a whopping 29%.
So what are some companies doing? Shrinking new versions of their products to keep costs down, something now known as shrinkflation.
So from the doesn’t that stink file, the meaning of this new term. Ed Dworsy, founder of the consumer site consumerworld.org says “Consumers are paying more for household staples in ways that don’t show up on receipts, thinner rolls, lighter bags, smaller cans.”
Why? “Companies are looking to offset rising labor and materials costs without scaring off customers,” Dworsy said.
So next time you are looking for paper towels, cereal, or bath products, check the size as well as the price.
While shrinking products are frustrating, companies say many consumers prefer it to higher prices. As always don’t waste your money.