What the Grocery Store Won't Tell You About Inflation

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A few months ago, I started getting strange alerts from my subscribe-and-save orders.
These are products I've had on auto-delivery for years — diapers, dishwasher detergent, toilet paper, the everyday essentials we use regularly. I've fine-tuned the delivery schedule so they arrive just before we run out. It's one of those small systems that makes life a little easier.
But then I got a message: Your item has been replaced with a different product.
"Weird," I thought. I clicked over to see what changed.
It was the same large box of dishwasher pods. Same brand. Same product. Same name. The price? Also the same.
Then it happened with the diapers. And again with the paper towels. And toilet paper.
At first, I thought I was losing it. Why was I being told these were "different" items?
And then I saw it — the unit sizes had changed. Same brand. Same product. But fewer diapers inside. Fewer pods. Fewer sheets.
My subscriptions were quietly shrinking.
Turns out this is pretty common. A 2024 LendingTree survey found that about one-third of the 100+ common consumer products they track have shrunk in size or servings since the pandemic. (The worst offenders? Toilet paper and paper towels.)
This phenomenon even has a cutesy name: shrinkflation. And it's one of the sneakiest ways inflation messes with our money.
Let's break down what it is, why companies do it, and how you can stay one step ahead.
Why Companies Shrink Products — Instead of Raise Prices
Let's say you run a cereal company.
The price of wheat goes up. So does sugar. And the cardboard you use for boxes. And shipping, because fuel costs more. And labor, because you had to raise wages to keep workers from quitting mid-shift.
Now you have two choices:
Raise the price of your cereal box.
Keep the price the same — but put less cereal in the box.
Guess which one your marketing team is going to vote for?
Most shoppers notice price hikes. Almost no one notices product shrinkage.
That's not just speculation — it's backed by behavioral science. Decades of research show consumers are far more sensitive to price than to quantity. A 30-cent increase? That gets noticed. A 10% smaller bag of chips? Most of us just think, "Huh, weird. I guess I'm hungrier than usual."
So companies do what works. They quietly cut quantity so they can keep the price — and your loyalty — right where they are. Their margins stay intact, their products stay competitive, and they dodge the "another price hike?!" backlash.
But wait — isn't that kind of... deceptive?
In some cases, yes. And it's usually done with a side of spin. Companies will call it a "redesigned container" or say it's "easier to hold" or "contains less plastic." They'll shave off an ounce or two and splash "new look, same great taste!" across the label. Some will even market it as healthier — "Now only 93 calories!" (Because you get fewer pretzels.)
Here's the kicker: It's technically not false advertising. If the net weight or quantity is printed on the label, they're within legal bounds. But let's be honest — they're banking on you not checking that line of tiny print.
And this isn't just about profits — it's about competition.
If a major brand raises its prices, shoppers might switch to a competitor. But if that same brand shrinkflates quietly, you might keep buying it out of habit — even if the price-per-ounce has crept up.
In an ultra-competitive market, shrinkflation is a way to pass on rising costs without blinking first. Because the first company to raise prices usually loses.
So When Does Shrinkflation Happen?
Short answer? When companies are feeling the squeeze — and hoping you won't notice.
Shrinkflation isn't random. It tends to pop up during specific economic conditions, almost like clockwork. Here's when it's most likely to hit...
1. When the Cost of Making Stuff Goes Up
Ingredients. Packaging. Labor. Fuel. Shipping. If it costs more to make or move a product, companies have to make a choice: raise the price, or shrink the product. And since raising prices risks backlash, shrinkflation becomes the quieter option.
It's the corporate version of "let's just hope they don't notice."
As one analysis put it, when raw material costs rise, "reducing the weight, volume, or quantity of products sometimes represents the best option."
2. When Inflation Is Already Stressing People Out
If people are already complaining about how expensive everything is, the last thing a company wants to do is hike prices again. So they don't. Instead, they keep the price the same... and just give you a little less. Voilà: same shelf price, less sticker shock.
3. When There's a Crisis (or Just the Aftermath of One)
Shrinkflation tends to spike during or right after major disruptions — pandemics, wars, supply chain chaos, or sudden tariff changes. It surged after the COVID lockdowns, when factories were short-staffed and shipping containers were stuck halfway around the world. With costs climbing across the board, companies got creative.
4. When They're Terrified of Losing Customers
In hyper-competitive industries — think snacks, cleaning supplies, paper goods — being the first brand to raise prices is a risky move. But shrinking your product a little bit? That's a way to keep your price tag intact while quietly increasing your profit margin.
5. After a "New and Improved!" Packaging Redesign
This is the classic move. A new label, a slimmer bottle, a box that's "more sustainable" — and suddenly the product inside has shrunk. If you ever see a "new look, same great taste!" banner, take that as a cue to check the fine print. Spoiler: it's rarely the same.
When to Watch for Shrinkflation in the Wild
Here's the good news: You don't need to turn into a human calculator to protect your wallet. But knowing when shrinkflation is most likely to strike can help you spot it — and stop feeling like your budget is gaslighting you.
Keep your radar up in these moments...
- After a Packaging Glow-Up. If your favorite product suddenly has a "sleeker design" or "fresh new look," it might also have fewer ounces. Companies love to mask a size cut behind a label refresh. Don't just look at the box — check the numbers.
- When You're Running Out Faster. You're using the same amount. But the bottle's empty a week early. That's not you being forgetful. That's often a sign the product itself has changed — just not in a way the company advertised.
- When the Economy Is Rocky. Shrinkflation thrives in chaos. Supply chain disruptions, inflation spikes, labor shortages, new tariffs — when business costs go up, consumers start paying more. Sometimes through price hikes. Sometimes through less product in the same package.
- On the Products You Rely on Most. You're least likely to notice shrinkflation on a new item. But your go-tos — the detergent you've used for years, the paper towels you always grab, the cereal your kids inhale every week — that's where changes stand out. Trust your instincts when something feels off.
- When a Sale Feels... Suspiciously Good. A familiar price doesn't mean familiar value. That "$3.99!" sale sticker might make you feel like you're getting a deal — but if the bag used to be 16 ounces and now it's 12? You're paying more per unit than you were before. The discount isn't real — it's just better disguised.