Manufacturers have been engaging in "shrinkflation," leaving consumers paying more for less, but stealthily.
By Bill Rice Jr. • April 17, 2019

When considering the topic of inflation—arguably the most important measure of our economy—what information gives us the truest picture of reality? The minutes from the most recent Federal Reserve Board meeting? The government’s latest Consumer Price Index (CPI) number? Or that roll of toilet paper down the hall in the bathroom, the one that’s now too narrow to fit on your old toilet paper holder?

My mission was to determine whether “shrinkflation” is occurring more than it did in the past. Shrinkflation is the practice whereby manufacturers reduce the size, weight, and/or contents of a package without lowering the price. Effectively, it’s a stealth form of inflation.

Another element of my project was to examine the question of whether official inflation might, in fact, be understated.

After two months researching the topic, do I believe shrinkflation is happening more often than it did in the past? Yes, absolutely. Two caveats: shrinkflation has been happening for decades, and any increase in the practice is somewhat difficult to quantify. But I am going to try.

Brian Todd, president of the Food Institute, said the practice has been going on as long as he’s been in the business (almost 40 years). “Downsizing has occurred in numerous food and non-food items over the years,” he said in an email.

Edgar Dworsky, a consumer advocate in Boston and the founder of ConsumerWorld.org, added that the practice can be traced back to the early 1900s. As vending machines could not be reconfigured to accept, say, a nickel and a penny when prices increased, the solution was to reduce the size of the product in the machine.

Ron Paul traces the practice back thousands of years to the days when a silver or gold coin would be “clipped.” Paul, 83, can remember when a candy bar cost a nickel. “All of a sudden the candy bar is a dollar, and it’s smaller!” he exclaimed.

So shrinkflation is nothing new. But is the practice accelerating?

find out here

https://www.theamericanconservative.com/articles/what-shrinking-toilet-paper-has-to-do-with-inflation/