Shrinkflation is the phenomenon of companies reducing the size or quantity of their products while maintaining the same price. This can be done in order to cut costs or to mitigate the effects of inflation. For example, a company might sell a bag of chips that used to be 10 ounces for $4, but then reduce the size of the bag to 8 ounces while still charging $4.

This means that the price of the chips, on a per-ounce basis, has increased, even though the overall price has not changed. Shrinkflation can be frustrating for consumers, who may feel like they are getting less value for their money.