Why is 'shrinkflation' happening in the economy?

Shrinkflation is when companies make things smaller but keep the price the same, like your favorite snack getting smaller, but you still pay the same amount for it.

Imagine you have a big bag of candy that has 20 pieces. It costs $2. One day, the company says, “We’re going to give you a bag with only 15 pieces, but it will still cost $2.” That’s shrinkflation, the same price, but less stuff inside.

Companies want to save money. If they can use less material or make things smaller, they don’t have to spend as much on making each product. It's like when you're baking cookies and you use a little less sugar, your cookie jar lasts longer, so you don’t need to buy as many bags of sugar.

At first, it doesn’t feel like a big deal. But over time, you might notice that things are getting smaller and smaller, even though the price stays the same. It’s like your favorite toy getting shorter, you still love it, but it doesn’t do as much anymore.