Saudi Press

Saudi Arabia and the world
Saturday, Mar 07, 2026

What is shrinkflation, skimpflation and stagflation?

What is shrinkflation, skimpflation and stagflation?

Have you been out to your favourite restaurant, only to discover the food wasn’t quite as good or the portions were much smaller? Or even eating at home has become more expensive as the supermarket shop adds up?

You may have also just discovered that your Amazon Prime membership is about to get a little more expensive and if you are in the United Kingdom, a McDonald’s cheeseburger is also going up for the first time in more than 14 years.

The feeling that everything is just a little bit worse and perhaps more costly is not unfounded with the blame largely being placed on inflation.

But what exactly is it and the other terms that are being waved around, such as shrinkflation, skimpflation and stagflation?

Euronews Next breaks down what exactly these words mean.


Inflation


Many countries are dealing with the effects of inflation, now at a 40-year high. What that means is that you get less bang for your buck and you are now getting even less value on goods.

Basically, prices go up when there are shortages and/or there is a large demand for goods or services.

The most current example is Amazon choosing to raise the cost of its Prime membership, a decision it blamed on inflation.

Inflation is measured by how expensive goods and services have become over a certain period of time, usually a year. One well-known indicator is the Consumer Price Index, which measures the percentage change in the price of a basket of goods and services consumed by households.

Moderate inflation is considered normal but significant spikes can mean the cost of living can suddenly become much higher.

The feeling that everything is just a little bit worse and perhaps more costly is not unfounded with the blame largely being placed on inflation.


The reason why inflation is so high at the moment is due to a perfect storm of economic woes as the International Monetary Fund (IMF) on Tuesday dubbed the world’s economic outlook “gloomy and more uncertain”.

Many have blamed the world's financial problems on the impact of Russia’s invasion of Ukraine, which has consequentially ramped up petrol and food prices and seen shortages of staple goods.

But even before the war in Ukraine broke out in February, the coronavirus pandemic meant factory shutdowns and also logistical hurdles in export hubs such as China causing supply chain issues and shortages. This ramped up the prices of goods and the cost to transport them.


Shrinkflation


If you are a Swiss chocolate fan, you may remember when Toblerone in 2016 looked a bit different; it no longer resembled the Alps and had the gaps between triangles widened.

File- More valleys, fewer chocolate peaks


While the cost of the chocolate bar did not go up, it shrank from a net weight of 170 grams to 150 grams.

This is a classic case of what is called “shrinkflation,” when the volume or size of a product shrinks.

It can be seen as a little more sneaky, as consumers are less likely to weigh a product and notice the difference compared to a price hike.


Skimpflation


“Skimpflation” on the other hand is when companies “skimp” on the quality of the product or service.

One of the main reasons this happens is because companies cut back on the quality of the service so it can still be profitable, meaning less money for staffing or materials are cut back on.


Recession


If stagflation is defined as a recession accompanied by inflation, then it is important to know what a recession is.

While the word can cause alarm, recessions are a natural part of the economic cycle. A recession is defined by two successive quarters having contracting gross domestic product (GDP) results.

But issues arise if low growth is combined with unemployment or high inflation, in what is known as stagflation, which is much rarer.


Stagflation


Another word being floated around at the moment is “stagflation”. As the name suggests, everything remains stagnant and does not move much.

In economic terms, it means high inflation, economic stagnation and high unemployment at the same time. Stagflation can happen if there is a recession before the rate of inflation has gone down to where central banks want it to be.

Many countries are dealing with the effects of inflation, now at a 40-year high.


The term is said to have been widely used in the 1970s after a recession in the US hit hard and was accompanied by inflation.

The period of stagflation in the 1970s and 1980s saw several recessions and weak economic growth. It ended after the US’s national bank, the Federal Reserve, raised interest rates to curb inflation.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
U.S. Justice Department Pursues Criminal Cases Against Cuban Officials in New Legal Push
Abrupt Cancellation of U.S. Army Exercise Sparks Speculation Over Possible Middle East Deployment
Saudi Arabia Led OPEC Output Surge Ahead of Iran Strikes, Survey Finds
Cristiano Ronaldo Travels to Spain for Hamstring Treatment After Injury in Saudi Pro League Match
Saudi Aramco Reroutes Oil to Red Sea as Strait of Hormuz Disruptions Hit Gulf Exports
Saudi Arabia Presses Ahead With Economic Diversification Despite Fiscal and External Deficits
Middle East Conflict Puts Bahrain and Saudi Arabian Formula One Races at Risk
Iran Targets Israeli Diplomatic Site in Bahrain and US Air Base in Qatar as Regional Conflict Expands
Saudi Arabia Intercepts Three Ballistic Missiles Targeting Prince Sultan Air Base
Iran Launches Fresh Missile and Drone Attacks Across Middle East as Regional War Intensifies
Saudi Arabia Opens Direct Communication Channel With Iran in Bid to Prevent Wider Regional War
Saudi Arabia Maintains Strong Fiscal Position Despite Global Uncertainty, Finance Ministry Says
Saudi Arabia Considers Response After Iranian Drone Strike Hits Major Northern Oil Refinery
Saudi Carrier Flynas Plans Limited Flight Resumption to Dubai Amid Regional Tensions
Saudi Arabia and UAE Pledge Close Coordination to Secure Oil Supplies for Japan
Middle East Conflict Casts Doubt Over Bahrain and Saudi Arabian Formula One Races
Iran Rejects Claims of Attacks on Türkiye, Azerbaijan, Saudi Arabia and Oman
Saudi Arabia Condemns Iranian Strikes Targeting Türkiye and Azerbaijan
Saudi Pro League Orders Clubs to Continue Matches Despite Escalating Regional Conflict
U.S. Embassy in Riyadh Issues Emergency Security Alert After Drone Strike and Escalating Regional Threats
Saudi Arabia Scrambles to Redirect Oil Exports as Gulf Storage Nears Capacity
Iran Expresses Gratitude to Saudi Arabia for Closing Airspace During Escalating Conflict
Saudi Arabia Fears Iranian Strikes Could Target Senior Leaders as Regional War Escalates
Iran Says Its Strikes Target Only U.S. Military Assets and Denies Attacking Saudi Arabia
Drone Strike Hits U.S. Embassy in Riyadh as Middle East Conflict Escalates
Tom Brady’s Saudi Flag Football Event May Shift to U.S. as Middle East Conflict Disrupts Plans
Iran War Strikes Saudi Arabia at a Critical Moment for Its Economic Transformation
Saudi Cabinet Declares Kingdom Will Take All Necessary Measures to Defend National Security
United States Urges Citizens to Leave Fourteen Middle Eastern Countries as Iran War Escalates
Saudi Aramco’s Ras Tanura Refinery Targeted Again in Second Drone Attack Within Two Days
Saudi Pro League Orders Clubs to Continue Fixtures Despite Rising Middle East Conflict
Trump Pursues Major Civil Nuclear Agreement With Saudi Arabia Amid Regional Turmoil
Mass Drone Attacks Strike Gulf States as Iran Conflict Spreads Across Region
No Verified Confirmation of Ronaldo Departure Linked to Iran Conflict or AFC Suspension
No Verified Evidence of Israeli Intelligence Arrests in Qatar or Saudi Arabia
Drone Attack Forces Temporary Shutdown of Saudi Arabia’s Largest Oil Refinery
Israel Intensifies Air Campaign in Tehran as Iran Expands Regional Retaliation
Iranian Strikes Escalate Middle East Conflict, Drawing Saudi Arabia Closer to Wider War
No Verified Confirmation of Drone Strike on King Fahd Causeway Amid Regional Tensions
No Verified Evidence Saudi Crown Prince Is Seeking to Weaken Israel Amid Regional Tensions
Reports Emerge of Drone Strike Near US Embassy in Saudi Arabia as Americans Told to Shelter
Saudi Arabia Weighs Strategic Options as Tensions With Iran Intensify
Iran Expands Strikes on Saudi and Qatari Infrastructure, Opening a New Front in Gulf Conflict
Western Navies Sound Alarm as Russian Shadow Tankers Transit NATO Waters in Defiance of Sanctions
U.S. Embassy in Riyadh Struck by Drones Amid Escalating Iran Conflict
Imola Emerges as Standby Venue if Bahrain or Saudi Arabia Grands Prix Are Cancelled
Uncertainty Clouds $24 Billion Gulf Investment Linked to Paramount–WBD Deal
Middle East Strikes Disrupt Qatar LNG, Saudi Refining and Israeli Energy Fields
Gulf States Signal Possible Collective Action Over Iran’s Escalating Strikes
Saudi Arabia Summons Iranian Ambassador After Cross-Border Attacks
×