We've all heard about inflation this year as the price of homes, cars, and food soars, but another term is suddenly being used more and more: shrinkflation.
The headlines say it all: "Consumer prices jumped 5% in May" and "U.S. inflation is highest in 13 years."
Between groceries and $3 gas, we are all paying more.
The U.S. Bureau of Labor Statistic released this data about year-to-year price hikes:
- gas prices up 52%
- airline tickets up 24%
- Home prices are up 15%
- Hotel rooms up 7%
- Clothing up 3%
- used cars up a whopping 29%
So what are some companies doing? Shrinking new versions of their products to keep cost down. It's something now known as "shrinkflation."
RELATED: Lumber prices are finally falling
Ed Dworsy, the founder of Consumerworld.org, says " consumers are paying more for household staples in ways that don't show up on receipts — thinner rolls, lighter bags, smaller cans."
Why? Dworsy says "companies are looking to offset rising labor and materials costs without scaring off customers."
So next time you are looking for paper towels, cereal or bath products, check the size as well as the price.
While shrinking products are frustrating, companies say many consumers prefer it to higher prices.