Shrinkflation

Shrinkflation

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

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