Shrinkflation is basically a form of disguised inflation, in which the size of a product is reduced to maintain its sticker price.
- Under this, instead of raising the price of a product, the company offers customers a smaller package/lesser quantity of the item at the same face value.
- Maintaining the previous price by giving less quantity of the commodity is a strategy adopted by companies to covertly increase the profit margin or maintain profit in the name of increasing cost. It is mainly adopted in the food and beverage industries.
Source – The Hindu