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'Shrinkflation' on the rise as companies try to offset rising costs

"If you don't think about it, you're going to end up spending more than you think, getting less than you think and getting into financial trouble," says Paul Isely.

GRAND RAPIDS, Mich. — While prices continue to rise amidst massive inflation, the amount of product you're getting is trending the other direction. It's called shrinkflation, meaning you're getting less bang for your buck.

Dr. Paul Isely, associate dean of Grand Valley State University's Seidman College of Business, says inflation plays a huge role, by sending prices skyrocketing.

"Faster than they have any time over the course of the last decade or two decades, three decades," says Isely.

He says consumer costs are up nearly 8% and cost for producers are up about 11%, so those companies have to make a decision.

"Decide am I going to increase the price so that what I'm selling you or I can sell you less stuff for the same price," says Isely.

A shrink in size is being used to cover the change in costs that the firm is seeing, and most probably haven't even noticed it. Over the last several months, Isely's been keeping track of several different products.

"I looked at a couple different beverages, I looked at some snacks and chips, I looked at some cereals, those types of things," says Isely. They've all shrunk without being advertised as doing so. Across those ten items, he's seen a 13% decrease in the size.

Isely says while it's not a huge change, its something to keep in mind when shopping.

"If you don't think about it, you're going to end up spending more than you think, getting less than you think and getting into financial trouble."

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