Is Shrinkflation Bad?

The concept of 'shrinkflation' has been floated around since the 1950s, although it has received quite a lot of attention in recent years especially as consumers have noticed how the products that they used to buy had decreased in size, number, or weight. 

The practice is done by manufacturers to assuage the effects of inflation and other factors like rising wages, increasing prices on raw materials, and the like on their profits. And as retail psychology goes, consumers will more readily notice an increase in prices over a decrease in the quantity or quality of the products, so from a retail perspective, it's much easier to simply shrink the products than to increase the price. 

 So, the question of whether or not it's advantageous depends on from whose perspective we're looking. Read more