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Video - Money: Know It to Grow It - Shrinkflation

Written by Synchrony Staff

Published Feb 06 | 1 minute read

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    Transcript:

    What is shrinkflation?

    Shrinkflation is one way companies try to hold down their products' prices.

    When companies face higher costs on things like

    ingredients, energy or salaries…

    …it can put pressure on them to raise the price of their product.

    But if they raise the price tag…

    …the sticker shock could drive customers away.

    So instead, they might choose to make the product smaller.

    Or, offer less of the product in the package.

    This way, they can still offer the item without raising the price.

    So if that bag of chips you bought seems a little lighter…

    …maybe your friend ate some…

    …or it might be due to shrinkflation!

    So that's shrinkflation. Find more ways to know and grow your money at synchronybank.com.

    LEARN MORE: Video - Money: Know It to Grow It - Compound Interest

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    Synchrony Staff

    This article contains contributions from multiple staff members for the Synchrony blog.

    *The information, opinions and recommendations expressed in the article are for informational purposes only. Information has been obtained from sources generally believed to be reliable. However, because of the possibility of human or mechanical error by our sources, or any other, Synchrony does not provide any warranty as to the accuracy, adequacy or completeness of any information for its intended purpose or any results obtained from the use of such information. The data presented in the article was current as of the time of writing. Please consult with your individual advisors with respect to any information presented.
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