Companies conducting 'shrinkflation' is legal, says UTEP professor
EL PASO, Texas (KFOX14) — Inflation has shrunk the amount of money in your wallet, but 'shrinkflation' has reduced the size of products you are buying.
Many Americans have felt the pain in their pocketbooks with the risen prices of gas, groceries, and inflation.
For Louie Baca this situation has him overwhelmed.
"I don’t feel good at all it seems like every time you come in prices are going up. Some companies claim to have the same prices but everything shrinks, hamburgers are getting smaller, everything is getting smaller but they keep saying oh we got the same prices," Baca said.
Consumers are noticing that everything is shrinking, which is due to 'shrinkflation'.
'Shrinkflation' is where companies raise prices per unit but conceal it by reducing the amount being sold and the same packaging as prior periods.
Dr. Tom Fullerton, economic professor at the University of Texas at El Paso said this practice is legal.
"This is legal, companies can change prices of their products however they want this way they do it and it reduces the amount of complaints that the companies receive as a consequence of this stuff," Fullerton said.
Families are having to take multiple trips to the grocery stores in a week.
"It doesn’t last, I’ve been there before and it doesn’t last anymore to buy everything after two days another shampoo or, chips, or milk, or anything is less," said Marisol Uribe.
'Shrinkflation' isn't the only thing consumers should look out for.
'Skimpflation' also exists and that is where companies will reduce the quality of the service or product that they are offering.
"Companies are always coming up with ways to protect or improve their operating margins and 'shrinkflation' and 'skimpflation' are ways of doing it," Fullerton said.
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