“Shrinkflation”: The Latest Consequence of Reckless Federal Spending, Explained

Source: Foundation for Economic Education
by Brad Polumbo

“We already know that top inflation metrics have recently surged, and executives at companies like Costco are warning that price hikes are hurting their customers. Now, there’s a new inflation consequence hitting consumers: ‘Shrinkflation.’ I’d never heard the term before today, but new reporting from the Washington Post explains how some companies are dealing with inflation in their supply costs by shrinking the sizes of their products, to avoid the customer backlash that comes with raising sticker prices. … This is just a crafty way companies are adapting to a surge in their expenses that isn’t their fault. But it’s more than a novel business trend worth noting — it’s yet more evidence that when policymakers make decisions that ultimately cause inflation, it hurts everyday citizens in their wallets in thousands of small ways.” (06/02/21)

https://fee.org/articles/shrinkflation-the-latest-consequence-of-reckless-federal-spending-explained/