Shrinkflation is a phenomenon where the size of a packaged good, such as a bag of chips or a container of yogurt, decreases while the price remains the same or increases. Experts have mixed opinions on shrinkflation. Some argue that it is a form of inflation as consumers are receiving less product for the same price. Others argue that it is a way for companies to maintain profit margins while still being able to offer lower prices to consumers. However, most experts agree that shrinkflation is something that companies should be transparent about, so that consumers are aware of what they are purchasing.
Consumers have been reporting shrinkflation for several decades, but it has become more prevalent in recent years. The term "shrinkflation" was first used in the UK in 2016, when the Office for National Statistics (ONS) reported that the average weight of a chocolate bar had decreased by 8.6% over the previous five years, while the price had remained the same. Since then, shrinkflation has been reported in a wide range of products, including packaged goods, toiletries, and even some fresh produce. The trend has been attributed to a variety of factors, including rising costs for ingredients, transportation, and packaging, as well as increased competition and changing consumer preferences.