We've all experienced the phenomenon of shrinkflation, even if we didn't know the name for it.
One day you go to the shopping centre you've been frequenting for years and your favourite treat – a packet of Tim Tams or a block of chocolate – seems to have less in it, yet the price has stayed the same or increased.
There may not be as much pasta in the usual pack, or manufacturers have cut the weight of a box of cereal.
At this unique point in history, shoppers may be noticing they're not getting as much for their money as before, but businesses have been dabbling in shrinkflation for decades.
University of Southern Queensland economics and finance expert Peter Phillips said there were multiple reasons for the cost-saving strategy, but the end result was the same.
"It all stems from a vicious cycle of inflation," Dr Phillips said.
"When costs go up at the manufacturing point, you can increase your price or put a few less chips in the packets and hope that it meets the margin so you can spread the cost to the consumer.
University of Queensland professor John Quiggin agreed decreasing product size was an easy way for businesses to save money.
But he said eventually the original size would be restored and appear on supermarket shelves at a higher price than before.
Dr Quiggin said it was a tried and true marketing strategy and that higher inflation rates and stagnant wages meant people were "feeling the pinch".
Wage increases might help
Dr Quiggin said shrinkflation was relatively rare in recent years because of low inflation as well as little to no increase in workers' pay packets.
"We did see this pattern, but it wasn't common, because many manufacturers weren't experiencing a price squeeze," he said.
But wages have stayed the same amid changes in economic conditions driven by COVID and natural disasters.
"There are a bunch of things that will go away — the floods had a big impact, but one more season and we won't be feeling the effect of the floods," Dr Quiggin said.
"The main thing is price and wage inflation have been too low for some time.
Employees will drive the increase in wages eventually, Dr Quiggin said.
"If you don't pay enough, workers will leave to get a better deal," he said.
"There have been lots of obstacles that have been erected to prevent wage increases in industrial relations.
"The government says they might advocate for aged care workers getting a pay rise, but that needs to be across the board.
Savings tips to use now
Wages and inflation are big issues that won't be solved overnight, but there are ways to control how much you spend at the shops, according to CHOICE editor Marg Rafferty.
"We all get into a groove and routine and make decisions on habit instead of savings tips," she said.
"Think about whether you're shopping at the cheapest supermarket.
"If you go with supermarket brand products, Aldi will be cheapest, but home brand items may be cheaper again."
Ms Rafferty said shoppers should avoid pre-packaged fruit and vegetables, which could be five times more expensive than loose products.
"Think about the cut of meat you're buying — boneless chicken breast is more expensive," she said.
"Think about refillable options, things like handwash, shampoo, cleaning supplies — all of them are cheaper with average saving of 30 per cent.
"The other thing to look out for is unit pricing.
"Check the label to work out how much you're paying per gram, and buy in bulk — you'll get it for quite significantly less if you buy the bigger option.
"Look at weekly specials, buy at sale if you can get it and it's something you can use."
