With high inflation comes Shrinkflation. Shrinkflation is the combination of Shrinking and inflation. It is when items shrink in their size and quantity. It is also called package downsizing.
Shrinkflation is when the products are sold in a smaller size or small quantity but at the same price. This allows companies to raise their Operating profit margin. With the high inflation around the world, the ‘shrinkflation’ is happening everywhere around the world.
“Downsizing comes in waves, and it tends to happen during times of increased inflation Bottom lines are being pinched and there are three basic options: raise the price directly, take a little bit out of the product, or reformulate the product with cheaper ingredients.”, mentioned Edgar Dworsky a consumer rights lawyer who worked...
