Shrinkflation is something that you may or may not have heard of, though it is probably affecting you. Even if you don’t know what this word means, you are most likely experiencing it right now without knowing it.
That is why it is a good idea to get familiar with this term and understand just what it means. Keep reading to find out what shrinkflation means and how it may be affecting you.
Table of Contents
What Does Shrinkflation Mean?
Shrinkflation is a word used to combine shrink and inflation, which is used to describe when a product changes in size and price. This basically means that items and quantities are shrinking while the prices for those things are only rising.
This is something that often happens when the economy is struggling, and prices are going up. The inflation refers to prices going up for all kinds of items this includes things like:
- Home supplies
- Personal items
The shrink portion of that word is used to describe how these items tend to become lesser during shrinkflation. So you are not only paying more for these items, you are paying more for less than you would normally get.
This is a way for businesses and companies to hide just how inflated their prices are by also limiting what they are buying. This makes it even harder to afford what you need as you are paying more out of pocket but ending up with less.
One great way of explaining this is imagining that you are paying an average of $3.50 for a bag of chips with 9 oz. of chips. With shrinkflation, you may end up paying $4.50, but you’re only getting 8 oz. of chips.
This is something that you may not even notice at first, but it can slowly have a huge impact on what you can and can’t afford.
How Does Shrinkflation Affect How We Shop and Eat?
With shrinkflation affecting nearly every category of food that we buy, people are starting to feel the effects. Even if you have never heard of shrinkflation, you have most likely started to feel its effects.
This has resulted in many people cutting back on their groceries in little ways. They may not buy that extra chocolate bar, or they are grabbing half-gallon jugs of milk instead of the full gallon.
Many people have also started to shop at cheaper food stores instead of where they normally shop. Though shrinkflation is affecting all food everywhere, even at the cheapest stores.
Regional food banks have also seen an increase as people are bedding to depend on food banks because they cannot afford what they need. The prices are too high, and the quantities are too low, creating shortages in homes.
What Is the Meaning of Shrinkflation?
Shrinkflation is a term used to describe when the price for something inflates, and the quantity or value shrinks. So you end up paying more for less as pieces everywhere start to rise.
This can have a devastating effect as people struggle to afford their basic necessities at grocery stores. Especially as shrinkflation affects all grocery stores, not just the more expensive options.