Inflation, shrinkflation and now ‘skimpflation’
Listen to the story (Canadian accent)
Recently, some products you see in stores are getting smaller, but the prices you pay for them are staying the same. This is called “shrinkflation.”
However, there's another thing happening too, called “skimpflation.” Skimpflation is when businesses reduce the quality or availability of their products or services but keep prices the same.
Skimpflation happens because the cost of production increases. To continue making a profit, businesses try to spend less money on materials or services. However, when a business spends less, it often negatively affects customers. But because prices don't go up, it can be difficult for customers to notice the changes.
In 2021, Disney was criticized for offering fewer services but charging the same ticket prices at its parks in the US. For example, after the Covid-19 pandemic, Disney World did not restart its tram service which brings visitors from the large parking lots to the parks’ entrances. After many complaints, Disney slowly started to bring back the tram service.
There are many forms of skimpflation, like having fewer workers in stores, reducing the quality of products, or using cheaper ingredients in food.
At grocery stores, you might have to use self-checkout machines and bag items yourself because there are fewer clerks to help. Food companies are also making products smaller and using lower-quality ingredients to save money.
Restaurants might seem slower because they don’t have enough staff, and hotels might not clean your room unless you ask. These changes are all part of skimpflation.
Vocabulary26 words
- Recently
- Not long ago
- Product
- something that is made to be sold or used by people; things you buy in a shop
- Shrinkflation
- When a product gets smaller but costs the same
- Skimpflation
- When businesses lower quality or services while keeping prices the same
- Reduce
- to make less; make smaller; decrease; bring down; shrink
- Quality
- how good or bad something is; condition;
- Availability
- the fact that something can be bought, used, or reached; How easy it is to get something; the state of being available (or not)
- Keep
- To continue doing something
- Production
- the process of making or creating something, usually on a large scale/in large numbers
- Increase
- to go up; to make something larger; to make more of; expand
- Profit
- The money a business makes after paying its costs; extra money; financial gain; money you can keep
- Material
- a physical thing that you use to build or make other things (cotton is a common material used to make t-shirts)
- Affect
- to have an influence on or change something;
- Notice
- to become aware of; to see; to learn of something
- Criticize
- to judge; to find mistakes or problems with something; to complain or say bad things about
- Pandemic
- when a disease or sickness goes all over the country or world
- Tram
- A long vehicle that carries people, like a train but on the road
- Parking lot
- car park (UK); an area where cars/vehicles can be parked and left when not being used
- Complaint
- a statement that something is wrong or not satisfactory; to stay that something is not good
- Form
- type; kind; variety; sort; shape
- Ingredient
- one item or type of food used with other types of food to make a meal or dish (tomato and cheese are pizza ingredients)
- Self-checkout
- A machine where you scan and pay for your own items without shop staff
- Bag
- To put something in a bag
- Item
- a single object or thing; one piece
- Clerk
- a shop worker; a person who helps customers
- Staff
- The people who work for a company or organization
Fill-in-the-blank listening
Play the audio again and fill in the missing words as you listen.
Recently, some _____ you see in stores are getting smaller, but the prices you _____ for them are staying the same. This is called “shrinkflation.”
However, there's _____ thing happening too, called “skimpflation.” Skimpflation is when businesses _____ the quality or availability of their products or _____ but keep prices the same.
Skimpflation _____ because the cost of production increases. To continue making a profit, businesses _____ to spend less money on materials or services. However, when a business _____ less, it often negatively affects _____. But because prices don't go up, it can be difficult for customers to _____ the changes.
In 2021, Disney was _____ for offering fewer services but charging the same ticket prices at its parks in the US. For example, _____ the Covid-19 pandemic, Disney World did not restart its tram service which _____ visitors from the large parking lots to the parks’ _____. After many complaints, Disney slowly started to bring back the tram _____.
There are many forms of skimplflation, like _____ fewer workers in stores, reducing the quality of products, or using _____ ingredients in food.
At grocery _____, you might have to use self-checkout machines and bag _____ yourself because there are fewer clerks to help. _____ companies are also making products smaller and using lower-quality ingredients to _____ money.
Restaurants might seem _____ because they don’t have enough staff, and hotels _____ not clean your room unless you ask. These changes are _____ part of skimpflation.
Discussion questions
- Have you ever noticed a product getting smaller or the quality getting worse but the price staying the same? How did you feel about it?
- How have skimpflation and shrinkflation affected your shopping habits?
- Do you think businesses should be required to inform customers when they make their products smaller or reduce the quality?
- What do you think are the advantages and disadvantages of using self-checkout machines at grocery stores?
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