(WXYZ) — We've all heard about inflation this year, as the price of homes, cars, and food soars. But another term suddenly being used more and more is shrinkflation.
The U.S. Bureau of Labor Statistics said gas prices are up 52%, airline tickets are up 24%, home prices up 15%, hotel rooms up 7% and used cars up 29%.
So, what are some companies doing? Shrinking new versions of their products to keep costs down. That's what "shrinkflation" is.
Ed Dworsky, the founder of the consumer site ConsumerWorld.org, said "Consumers are paying more for household staples in ways that don't show up on receipts - thinner rolls, lighter bags, smaller cans."
Why? Dworsky said, "companies are looking to offset rising labor and materials costs without scaring off customers."
So, next time you're looking for paper towels, cereal or bath products, check the size and the price. While shrinking products is frustrating, companies say many prefer it to higher prices.