The increase in worldwide inflation rose up to 9.22% in 2022 which was the highest rate of increase in the last 40 years and because of this companies are paying more for their raw materials and finding ways to keep profits strong. The rates of additional expenditure for the cost of necessities are rapidly increasing, which goes unnoticed by us as the added values are just slightly increasing but make a vast difference when they add up in our overall expenditure. Most of the time during shrinkflation, the prices of the product remain the same but the company decreases the quality, size or quantity of the products causing the customers to pay more for the product than its actual value without realizing or acknowledged it. This leads to shrinkflation which is a form of hidden inflation

Another method of shrinkflation is when products are marketed for the general public to perceive them better or bigger in size than they actually are. For example, a cereal company getting more sales of a regular size product due to forging the text “family size” or “10% extra cereal” on the boxes. This tactic keeps the companies profits strong as customers easily fall for this. Shrinkflation is an economic topic that is not addressed or acknowledged as it usually goes unnoticed or ignored. Even we experience this issue in common brands or companies that we consume or buy products from. For example- the decrease of quantity of chips in a lays bag, the decrease of size of an average pringle chip over the years. If we pay attention to the small details of products we have been using or consuming for a while, we can notice the changes in these products.

Another method of shrinkflation is when companies package their products to create an illusion for the consumers, who are actually getting a lesser amount of a product that they paid a full price for. Not knowing that the greed of these companies are extracting huge amounts of money overtime from our pockets without us realizing it. When companies do not put in enough effort to cover up these tactics, they are sometimes noticed and criticized by the consumers but this issue even today, is not properly addressed and companies get away with this very often.

One of the most negative factors about shrinkflation, other than it being disregarded by us is the impact of shrinkflation on fundamental or prerequisite appliances such as medicines, medical supplies and other human necessities. Even though it seems almost impossible to control the current escalating rates of shrinkflation, we can slightly prevent them for our own betterment by buying competing brands and buying whole-foods rather than pre-packages products as they are less prone to shrinkflation and and closely reviewing the details of products we buy.