Shrinkflation: What You Need to Know

Shrinkflation is a sneaky tactic used by manufacturers during times of high inflation. Instead of raising prices on their products, they decrease the quantity in each package. This means you're paying the same amount but getting less product. Sneaky, right? But not illegal! Businesses have to follow state laws on consumer protection and fair practices.

So how does shrinkflation work? Well, businesses look at supply and demand for their products. If consumers are price-sensitive, they won't risk losing customers by raising prices. Instead, they reduce the amount of product in each package. They have to disclose the weight and quantity of the product, but they're hoping you'll notice the price, not the size.

Why do businesses resort to shrinkflation? Rising costs like fuel, transportation, and labor can squeeze their profits. By shrinking products, they can save money on production and packaging. Whether they raise prices or shrink products, you end up paying for inflation in the end.

How can you deal with shrinkflation? Compare the unit price (cost per ounce) of products to see which gives you the best value. Also, buy items with less packaging like eggs, apples, and lettuce as they're less likely to be affected by shrinkflation. Remember, knowledge is power when it comes to navigating shrinkflation!