"Shrinkflation” (shrink + inflation) occurs when, rather than simply raise the price of a product, the product shrinks in size (with the price remaining about the same for less product). “Shrinkflation” had been cited infrequently with differing meanings, but the term became popular in 2013. “The prices are staying the same, but the items we buy are shrinking. That’s shrinkflation” was cited in print in May 2013.
American economist Philippa “Pippa” Malmgren spoke frequently on “shrinkflation” in 2013 and 2014.
In economics, shrinkflation is the process of items shrinking in size or quantity while their prices remain the same.
The rebels who sparked the supply-side revolution and restored American prosperity
By Brian Domitrovic
Wilmington, DE: ISI Books
Actually, it was “shrinkflation,” in that the economy was contracting as prices surged.
This is MONEY (UK)
‘Why do it unless it is to make more money out of us?’: Products are getting smaller while the price you pay stays the same
By TOBY WALNE, FINANCIAL MAIL ON SUNDAY
PUBLISHED: 16:04 EST, 4 May 2013 | UPDATED: 03:01 EST, 8 May 2013
Inflation is an obvious menace when prices are rising, but a more insidious form is finding its way into our trolleys – the prices are staying the same, but the items we buy are shrinking. That’s shrinkflation.
Just minutes into the working week and a new annoying made-up word has come to my attention: shrinkflation.
3:32 AM - 7 May 2013
Products get smaller but not the price
It is important to go through bills and looking for better value on the shelves
May 12, 2013
Inflation is an obvious menace when prices are rising, but a more insidious form is finding its way into our trolleys the prices are staying the same, but the items we buy are shrinking. That’s shrinkflation.
This is MONEY (UK)
MARC SHOFFMAN: That shrinking feeling - how Golden Wonder made me a victim of shrinkflation
By MARC SHOFFMAN
PUBLISHED: 05:44 EST, 24 October 2013 | UPDATED: 06:03 EST, 24 October 2013
Shrinkflation is the concept that goods have got more expensive and also smaller.
Malmgren @DrPippaM says ‘shrinkflation’ ($KMB putting fewer diapers in packages, cattle-rustling) -> signal of pre-inflation.
11:54 AM - 31 Oct 2013
Shrinkflation: Pippa Malmgren explains how to look for hidden rise in prices | Web Extra
Published on Mar 8, 2014
What is Shrinkflation? Pippa Malmgren explains in a Boom Bust Web Extra that before inflation begins to reflect prices rising, you begin to see companies repackage their products to hide rising costs. The size of products begin to get smaller: you’ll see smaller candy bars, fewer potato chips, and a lot more air in those packages. This shows that companies are facing margin pressure, and when customers get upset that they are getting more air than food, only then will companies raise the price.
From Chocolate to Beer, Shrinkflation Hits the Supermarket
By Simon Kennedy Sep 3, 2014 3:46 PM ET
Inflation may be lurking in the aisles of supermarkets.
Even with price pressures tame to non-existent in the industrial world, economist Pippa Malmgren says they’re there if you look.
A former adviser to President George W. Bush, Malmgren is zeroing in on what’s come to be known as “shrinkflation”—where companies charge consumers the same, or more, for less. That may foreshadow an overall jump in prices, an alarm she’s been sounding for a while.
ECB Meets To Tackle Deflation While Ignoring Shrinkflation
Submitted by GoldCore on 09/04/2014 11:52 -0400
Shrinkflation Becoming More Obvious
This core rate of inflation however does not provide much solace to consumers who, on a daily basis, are experiencing what has become known as stealth inflation or ‘shrinkflation’.
In a recently published book, Dr. Philippa Malmgren re-highlights this ‘shrinkflation’ trend. Malmgrem is a former financial market advisor to the White House, and a former member of the US Working Group on Financial Markets, which is more commonly known as the Plunge Protection Team.
According to Malmgren, ‘Shrinkflation’ refers to the concept where companies reduce the weight or size of an item without increasing its price. In this way a company can increase its operating margin and profitability by cutting costs while maintaining the same sales volume.
New York City • Banking/Finance/Insurance • Thursday, September 04, 2014 • Permalink