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In economics, shrinkflation, also known as package downsizing, weight-out,[2] and price pack architecture[3] is the process of items shrinking in size or quantity while the prices remain the same.[4][5] The word is a portmanteau of the words shrink and inflation. Skimpflation involves a reformulation or other reduction in quality.[6]
Shrinkflation allows manufacturers and retailers to increase their operating margin and profitability by reducing costs whilst maintaining sales volume, and is often used as an alternative to raising prices in line with inflation.[7] Consumer protection groups are critical of the practice.
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