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Shrinkflation

SHRINK-flay-shun /ˈʃrɪŋkˌfleɪʃən/

nounC1

informalbusiness

The practice of reducing the size or quantity of a product while maintaining its price, or increasing the price incrementally.

Shrinkflation is a subtle form of inflation where consumers pay the same (or more) for less product. It's often used by companies to offset rising production costs without directly raising prices.

The story behind the word. The word 'shrinkflation' is a modern portmanteau, a blend of 'shrink' and 'inflation.' It emerged in the early 21st century to describe the phenomenon where products 'shrink' in size or quantity while their prices remain the same or even 'inflate' slightly. It's a clever, if sometimes frustrating, way for companies to deal with rising costs.

Word relationships

stealth inflation: A descriptive term highlighting the hidden nature of shrinkflation.
deceptive pricing: A broader term for any pricing strategy that might mislead consumers, of which shrinkflation is one type.

Commonly confused with

Inflation: Inflation is a general rise in prices across the economy; shrinkflation is a specific tactic by companies to effectively raise prices by reducing product size, often in response to broader inflation.

Collocations

hidden shrinkflation
widespread shrinkflation
combat shrinkflation

Example sentences

"Consumers are increasingly frustrated by shrinkflation, noticing smaller candy bars and fewer chips in their bags." Consumer advocacy report.
"Facing higher input costs, many food manufacturers have resorted to shrinkflation rather than outright price hikes." Business news analysis.
"My favorite cereal box is definitely smaller now; it's a classic case of shrinkflation." Everyday observation.

Memory hook

The product SHRINKS in size, but the price stays the same, so it's a hidden form of INFLATION. Smaller product, same price

When not to use

Do not use 'shrinkflation' to describe a straightforward price increase or a product that has always been small. It specifically refers to a reduction in size/quantity while the price stays the same or rises slightly.

Fun facts

The term 'shrinkflation' is believed to have been coined by British economist Pippa Malmgren in 2009.

Related words

Inflation

Explore more words

incremental, reduce, dematerialization, retrench, deplete, imperceptible