Skimpflation

We propose a new word to describe this stealth-ninja kind of inflation: skimpflation. It's when, instead of simply raising prices, companies skimp on the goods and services they provide.

Some economists have pegged a new word to this phenomenon where, rather than raise prices, companies cut services previously provided: skimpflation. Skimpflation could mean reduced staff, thus longer lines or phone hold times.

Companies face an appalling dilemma, said Laith Al-Khalaf in The Sunday Times – pass on increased costs to consumers “and risk losing them to rivals”, or “absorb the hit”. No wonder many are opting for a third path: “skimpflation”. The trick is to erode “the quality of their goods” – say, by “menu engineering” to focus on cheaper foods – in the hope that “hoodwinked” consumers either don't notice or don't care.

Sadly it's a sign of the times, and consumers will have to get used to this practice of skimpflation, where brands reduce the value of their services to remain profitable.

"This is now called Skimpflation, which means a manufacturer has reformulated one of its products, usually with cheaper ingredients," says Dworsky, a former Massachusetts Assistant Attorney General in consumer protection.

How To Be A Savvy Shopper Amidst Skimpflation […] And while it might require a little more time and energy in the aisles, there are ways to prevent your diet from suffering amidst inflation.