Shrinkflation is just inflation by another name, and two other facts to keep in mind during tonight’s State of the Union address.
by Eric Boehm
Reason.com
President Joe Biden will reportedly use tonight’s State of the Union address to once more rail against what the White House has taken to calling “shrinkflation”—the annoying corporate practice of shrinking the size of products rather than raising prices.
Politico reported this week that “recent drafts of Biden’s State of the Union address have included a reference to shrinkflation as part of a broader segment on administration efforts to pressure companies to lower costs across the board.” A White House spokesperson told the outlet that Biden “will continue to call out rip-offs such as shrinkflation, greedflation, and price gouging.”
You’ll note that, up there in the first sentence, I acknowledged that shrinkflation is annoying. It is, and polls show that consumers are indeed put off by the practice.