shrinkflation

/ˈʃrɪŋkˌfleɪʃən/
nounIntermediate
💰Finance
informal

the practice of reducing the size or quantity of a product while keeping the price unchanged, often as a way to avoid raising prices due to inflation

Consumers noticed shrinkflation when their favorite chocolate bars became thinner but cost the same.

People realized the chocolate bars were smaller but still priced the same.

💡

This term combines 'shrink' (reducing size) and 'inflation' (rising prices). It is commonly used in discussions about consumer goods and pricing strategies.

Collocations

shrinkflation tacticsmethods used to reduce product size or quantity without lowering pricesshrinkflation strategya business approach to avoid price increases by reducing product size

Synonyms

Antonyms

Related Phrases

stealth inflationphrase
a subtle increase in prices that is not immediately noticeable
cost-push inflationphrase
inflation caused by rising production costs

💡Pro Tip

Recognizing Shrinkflation

Pay attention to product sizes and weights when shopping. Compare past purchases to current ones to identify shrinkflation.

Gold Rule

Business Use

Companies may use shrinkflation to avoid customer backlash from price increases while still adjusting to rising costs.

📖Word Origin

A portmanteau of 'shrink' and 'inflation', coined in the late 20th century to describe a business practice of reducing product size while maintaining prices.

📝Usage Notes

Shrinkflation is often used in economic and business contexts to describe how companies adjust to rising costs without explicitly raising prices. It is considered a form of hidden inflation.

Word Breakdown

shrink
to reduce in size
root
+
flation
related to inflation (rising prices)
suffix
English Dictionary