HONOLULU (KHON2) — Have you been victim of the recent trend among retailers trying to offset increased costs?
The nickname is called “shrinkflation” and it comes from certain companies choosing to charge the same amount of money for a product of a smaller size.
“It’s a sneaky way to raise prices on shoppers,” Consumerworld.org Founder Edgar Dworsky told Nexstar’s WFLA.
Companies will sell an item for the same amount but give the consumer less of it and these cuts can save companies millions of dollars Dworsky said.
“They know most shoppers are not going to realize it because shoppers are price sensitive, price conscious but they’re not net weight conscious,” said Dworsky.
Shrinkflation has been reported to go on long before the start of the coronavirus pandemic.
The UK’s Office of National Statistics published a 2018 report that found more than 200 product packages shrank from 2015 to 2017.
They found breads, and cereal boxes were most likely to shrink over time. But could this be caused by inflation?
The definition of inflation is when the price for an item or service accelerates making the cost of living more expensive and decreasing the purchasing power of Americans’ earnings and savings.
Get more coronavirus news: COVID vaccines, boosters and Safe Travels information
In the past it has been reported that an increase in inflation has led to higher pay as workers demanded and received raises to keep pace.
The Associated Press Contributed to the article.