Studies show 75% of Americans have noticed they’re getting less for the same or more money, and almost half have reduced spending on some brands in response. Let’s decode how it’s done and how you can withstand it.
What is hidden inflation?
Hidden inflation is when the price doesn’t rise but the value falls. Companies either provide you with less product, poor quality, or eliminate extras that used to come as standard. Three are the main types:
- Shrinkflation – smaller size, unchanged price.
- Skimpflation – poorer quality, unchanged price.
- Sneakflation – fewer extras, unchanged price.
- Shrinkflation: Smaller Sizes
- Shrinkflation is the most popular strategy. Packs get smaller, yet prices stay the same.
- Jif Peanut Butter To Go cups were reduced from 1.5 ounces to 1.1 ounces, meaning each ounce was 36% more expensive.
- Lorna Doone snack packs went from 1.5 ounces to 1 ounce, meaning each ounce was 50% more expensive.
- Chex Mix family-size containers were reduced from 15 ounces to 13.5 ounces, adding 11% to costs per ounce.
Everyday items like cereal, toilet paper, and snacks are gradually shrinking in size, and nobody really notices.
Skimpflation: Lower quality
Sometimes the package is the same, but the quality is not. This is skimpflation.
Turkey Hill replaced some ice creams with “frozen dairy desserts,” which cost less to make but taste less creamy.
Annie’s Shells & Cheddar promoted a “cheesier” version but sneakily substituted butter and skim milk with cornstarch.
Restaurants also do the same by replacing cheaper ingredients or making portions smaller.
Sneakflation: Fewer perks
This is where businesses are making extra money for things previously included.
Airlines charge now for seat choice, overhead bins, and even boarding passes—generating billions in charges.
Hotels tack on “resort fees” for WiFi and pools, even though they were once free.
Streaming services such as Netflix relocated ad-free viewing to higher-cost plans. What previously cost $11.99 now costs $17.99.
Why do companies do it
Firms charge more for transportation, labor, and materials. Instead of raising prices outright, they shrink products or settle for lower quality because customers react less strongly. Customers instantly notice a $1 price increase but can’t always spot a smaller cereal box or bare-bones recipe.
How you can fight back
The best news is that you can protect your wallet by being a smarter consumer.
Check unit prices. Compare price per ounce, pound, or item, always. Do the math — more often than not, the bigger-looking bargain isn’t the best buy.
Buy store brands and in bulk. Store brands usually cost 20% less and shrink at a slower rate. Bulk buying at stores such as Costco is also a boon.
Watch the things you buy regularly. Take pictures of labels so you’ll know if there are size or recipe changes.
Make a racket. Vent online or complain to companies. Public pressure works—McDonald’s brought back its $5 value meal when customers complained about the price being too high.
Use cashback apps and rewards. Ibotta and Rakuten, as well as cashback cards, can help curb rising costs.
Read this retail news much later:
What could Walgreens takeover by private equity mean for patients?
Could McDonald’s spark a fast food price war?
Red Lobster’s has a new deal, but fans of Endless Shrimp may be disappointed
Potentially life-threatening frozen vegetables recalled over listeria risk
Good news for Halloween fans: Aldi’s scary decorations drop this week starting at $1.99
Big retail changes are coming soon — here’s how shoppers will be affected
