Origin Dictionary / OD-123
Shrinkflation
The price is unchanged. The packet lasts two breakfasts less.
01Dictionary Meaning
Shrinkflation is a reduction in the size or quantity of a product without a corresponding reduction in its price.
02What People Think
"At least my usual brand has not raised its price."
03What’s Underneath
Imagine a $5 bag of cereal shrinking from 500 grams to 400 grams. The checkout total is unchanged, but the price per 100 grams rises from $1 to $1.25. You are paying 25 percent more for the same quantity. The increase is visible in the unit price even when it is absent from the familiar shelf price.
Brands can change weight, volume or item count while keeping a package looking broadly familiar. A bottle may still fit the same place in your cupboard. A multipack may still look generous. Remembering the usual price is easier than remembering every previous weight and count, which helps the change pass unnoticed.
Smaller packaging is not automatically shrinkflation. A genuinely cheaper small pack may suit a smaller household and reduce waste. What matters is the relationship between the quantity supplied and the price paid. U.S. consumer-price measurement accounts for identified size changes; a steady sticker price does not necessarily mean a steady measured price.
04The Game
Compare price per equal unit, then consider how much you will actually use. A larger package can have a lower unit price and still waste money if half of it goes stale. Familiar packaging is a weak substitute for checking the amount inside.
05One Line
The price stayed still because the product got smaller.
Explore M1 Library
M1Youth Finance
See how package sizes and unit prices affect the household budget.
References 1
- Getting less for the same price? Explore how the CPI measures “shrinkflation” and its impact on inflation
U.S. Bureau of Labor Statistics