A global recession is on the horizon, and almost all parts of the world are being hit by the downtrends in finance and currency values. With these developments in the global economy, a new trend is emerging, currently known as SHRINKFLATION, and this is something you should be interested in as well.
What is Shrinkflation?
According to Investopedia: Shrinkflation is the practise of reducing the size of a product while maintaining its sticker price. They further stated that raising the price per given amount is a strategy employed by companies, mainly in the food and beverage industries, to stealthily boost profit margins or maintain them in the face of rising input costs.
Put simply, it is the practise of reducing the size of a commodity while maintaining its price. Here is an example of this:
These companies will cleverly and unannounced reduce the quantity of their products by removing bits of it like 1 to 10 grams, in such a manner that the consumer will be undisturbed by the change.
Why is it happening now?
There is global inflation that could be attributed to a lot of reasons, and with this comes high manufacturing costs, which businesses will naturally want to move to consumers in order to sustain profits.
Manufacturers can adopt this practise for a number of reasons, including to gain competitive advantage. However, currently, there is no doubt that the current bleeding global economy is informing this practice.
What you can do
In a situation of shrinkflation, there are a few things you can do. One common advice is to prepare for shrinkflation by buying groceries in bulk. Another common practise that is recommended is to seek a close alternative, if available. As a last resort, simply give in by purchasing the product in its new size. Expect shrinkflation around you, if you aren't a victim already!