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How Shrinkflation Is Squeezing Americans’ Wallets
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Subscribe22 JUN 2026 / ECONOMY
Americans are paying on average $741 more per year for the same groceries compared to 2020 due to the phenomenon known as shrinkflation, where companies reduce the size, weight, or quantity of products but maintain or raise the price. This pricing strategy, affecting consumers but hitting low-income households the most, is unlikely to reverse even with potential cost reductions from the recent U.S.-Iran peace deal, leading to shifts in consumer behavior such as increased brand switching and more attention to unit prices.
Remember when a family-sized bag of chips actually felt family-sized? Or when a 2-liter soda did not require a mini financial analysis before checkout? That era feels like ancient history now. Today, shoppers walk into Walmart, Target, Kroger, or Costco,...
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