3 Ways to Keep Inflation from Shrinking Your Retirement
Inflation has been a hot topic for months and likely will be well into 2022. Its impact is immense; with inflation at its highest level in 40 years and interest rates rising, consumer sentiment is falling.
As we come to grips with rising costs for goods and services, it's also important to understand a concept called shrinkflation, which is common during periods of high inflation and further fuels pessimism and anxiety about the economy.
Shrinkflation is when companies give you less for your money to compensate for their rising production and supply costs. Rather than raise the product's price, which most customers would notice immediately, companies downsize the product. For example, a slightly smaller box of cookies for the same price you've been paying isn't as readily detected by some consumers unless you read the fine print. There are all kinds of examples of product manufacturers engaging in shrinkflation.