Nowadays, in addition to the use of the word inflation, other themes are used to explain the bullish phenomena that we encounter in the financial market. Most often, these are the phenomena of shrinkflation and skimpflation. Read this article to find out more about these different concepts.
The difference between inflation and the phenomenon of shrinkflation
As we have always defined it, inflation is a phenomenon that refers to a rise in the price level of goods and services. It is a situation that usually occurs during moments of the financial crisis in a country. Today, not only is inflation spoken of everywhere, but also the phenomenon of shrinklation. After the global health crisis, this expression is used to explain how the quantity of products decreases while keeping the usual price. So here, it is no longer the price of the product that is rising, but rather the quantity of the product on sale that is less than the usual quantity. This theme is known in French as "réductionflation". It is therefore a form of inflation but does not convey the same thing as the word inflation.
The difference between inflation, shrinklation, and skimpflation
In accordance with the explanations given above, the first two concepts belong to the same family, but each gives a particular explanation. The same applies to the latter. Skimpflation also known as skimping is a phenomenon whereby, there is a decrease in service for a constant price. Examples include disruption of supply chains resulting in late deliveries or even longer than usual waiting times in some restaurants.
In summary, shrinklation and skimpflation are concepts that find a home under inflation in order to give more precision to how inflation is applied in the financial market.
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