skimpflation

Blend of skimp +‎ inflation

skimpflation (uncountable)

1. (economics, informal, neologism) The practice of reducing the quality of products while continuing to market them at the same price.

   Synonym: quality fade

   • 2021 October 26, Greg Rosalsky, “Meet skimpflation: A reason inflation is worse than the government says it is”, in Planet Money‎:

     We propose a new word to describe this stealth-ninja kind of inflation: skimpflation. It's when, instead of simply raising prices, companies skimp on the goods and services they provide.

   • 2022 March 17, Sally French, “One of the most basic hotel amenities is disappearing”, in Honolulu Star-Advertiser:

     Some economists have pegged a new word to this phenomenon where, rather than raise prices, companies cut services previously provided: skimpflation. Skimpflation could mean reduced staff, thus longer lines or phone hold times.

   • 2022 April 30, “Netflix et al.: the great cancellation”, in The Week, Bath, page 41:

     Companies face an appalling dilemma, said Laith Al-Khalaf in The Sunday Times – pass on increased costs to consumers “and risk losing them to rivals”, or “absorb the hit”. No wonder many are opting for a third path: “skimpflation”. The trick is to erode “the quality of their goods” – say, by “menu engineering” to focus on cheaper foods – in the hope that “hoodwinked” consumers either don't notice or don't care.

   • 2022 September 2, Nicholas Dawson, quoting David Beard, “Blow for Sainsbury's Bank customers with huge Nectar points change - 'really unfair!'”, in Express‎:

     Sadly it's a sign of the times, and consumers will have to get used to this practice of skimpflation, where brands reduce the value of their services to remain profitable.

• shrinkflation