Skimpflation: Shrinking Product Sizes Instead of Raising Prices
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'Skimpflation' refers to companies reducing product sizes rather than raising prices in response to inflation. This gives the illusion of stable prices.
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It provides less value to consumers who get less product for the same money. Consumers may not notice the changes.
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After repeated size reductions, companies may later offer larger "party" sizes, misleading consumers.
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Skimpflation reduces consumers' purchasing power, forcing them to spend more to maintain quantity/quality.
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It disproportionately affects low-income consumers who have less flexibility to choose alternatives.