Shrinkflation as a method of concealing price increases on goods

The aim of the article. The purpose of the study was analyzed shrinkflation as an economic phenomenon, identify its main causes, consequences, and impact on consumer behavior, and assess possible measures to combat this phenomenon. Analysis results. In the context of global economic instability, consumers face various forms of hidden price increases. One of the most common phenomena in this regard is shrinkflation, which manifests as a reduction in the volume or weight of a product while maintaining its price. This phenomenon is particularly relevant under inflationary pressure, as manufacturers seek to avoid openly raising prices while preserving consumer loyalty. Studying this phenomenon is essential for understanding the mechanisms through which shrinkflation affects the economy, consumer behavior, and government regulatory policies. This article examines the main causes of shrinkflation, its consequences for the market, and possible ways to counteract it. The essence of the study lies in a comprehensive analysis of shrinkflation mechanisms, its prevalence across different countries and economic sectors, and its impact on consumer trust in manufacturers. The research is based on the analysis of statistical data, comparisons of real-world examples of shrinkflation, and an examination of its psychological aspect, as hidden product reductions can alter consumer habits. The novelty of this study lies in the systematization of information about shrinkflation and its consideration not only as a part of the inflationary process but also as a distinct marketing phenomenon. The analysis includes an exploration of how this process affects consumer trust, competition between companies, and government regulatory policies. Additionally, the study allows for an international perspective on shrinkflation, evaluating the effectiveness of different regulatory approaches and determining the long-term consequences for the consumer goods market. The findings of this research hold significant practical value for consumers, businesses, and government authorities. For consumers, the study helps to better understand manufacturers' marketing strategies and make more informed purchasing decisions. For businesses, analyzing shrinkflation enables companies to assess the risks of losing consumer trust and find a balance between maintaining profitability and ensuring price transparency. For government regulators, the research can contribute to the development of mechanisms to counteract manipulative pricing practices and protect consumer rights. Conclusions and direction for further research. Shrinkflation is a common phenomenon that is intensified in conditions of economic crises, inflation and instability in the resource market. The main causes of shrinkflation are the increase in production costs, shortages of raw materials, the desire of companies to avoid the negative perception of price increases and competition in the market. Shrinkflation has a dual impact on the market: on the one hand, it allows companies to maintain price stability, on the other hand, it undermines consumer confidence, which can lead to a loss of customer loyalty. States react differently to shrinkflation, from packaging and labeling controls to the introduction of stricter consumer information standards. Prospects for further research include assessing the long-term impact of shrinkflation on the economy and consumer behavior; studying the effectiveness of regulatory measures in different countries to protect consumer rights; developing alternative business models that will allow companies to maintain profitability without using hidden methods of product reduction; research into the psychological aspect of shrinkflation perception, as consumer reactions to this phenomenon can vary significantly depending on the level of trust in the brand and the economic situation in the country. Thus, shrinkflation remains a relevant topic for further research, especially in the context of global economic changes and business adaptation to new challenges.