Products on the shelves getting smaller? You can blame 'shrinkflation'

CNN Business Correspondent Alison Kosik talked to an ASU supply chain expert to learn how manufacturers make small changes to products but keep costs the same. Known as 'shrinkflation,' it happens when companies are trying to compensate for the higher prices due to inflation.

In this interview aired July 19, 2022, on CNN:

I talked with the authority on this subject. His name is Hitendra Chaturvedi. He's a supply chain professor at Arizona State University. He says shrinkflation is the kind of inflation that companies don't want you to notice. What we're seeing now is manufacturers quietly shrinking the size or the amount of the product but not lowering the price. They're doing it because they're facing higher costs, like production and labor costs.

– Hitendra Chaturvedi, professor of practice in supply chain management