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A recent study by progressive economists reveals that companies are using "shrinkflation" to raise prices by offering smaller portions at the same or higher cost, contributing significantly to inflation in various products.
Senator Bob Casey has introduced a bill to combat this practice, and President Biden has called on companies to stop it.
The study found that shrinkflation played a substantial role in inflation between 2019 and 2023, with up to 10% of inflation in key product categories attributed to this tactic.
Examples of shrinkflation in household products, cleaning supplies, coffee, and candy were highlighted in the report, showcasing how companies use this strategy to boost profits.
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