This is sneakflation, the phenomenon that is driving up prices according to experts—and how you can spot it

You may have heard the term shrinkflation, which refers to a business practice where a company keeps the price the same but reduces the product size. This tactic is especially common in the snack and beverage industry, where consumers might not notice subtle changes in volume or weight.

Now, as Trump’s tariffs begin to take effect, economists are warning of a broader phenomenon: sneakflation. This includes shrinkflation but also encompasses other misleading strategies designed to make customers feel like they’re not paying more for less.

The ‘sneakflation’ gammet

In addition to shrinkflation, consumer advocates are warning that companies may begin to lower the quality of their products while maintaining the same price for customers. Marketplace reported that some companies are looking for innovative ways to keep prices down, after noticing that “consumers are more sensitive and suspicious of corporate greed," given the rapid increases in prices seen across the markets since 2022.

So, how can companies avoid raising prices for consumers while absorbing higher costs from tariffs? According to Marketplace, shoppers may soon face fewer free returns and higher shipping fees. And it’s not just retail—restaurants have already begun adding service fees to bills that aren’t listed on the menu, leading to unwelcome surprises for diners. As these cost-saving measures become more common, businesses will need to manage customer frustration over hidden fees and shifting terms of service. If widely adopted, however, consumers may find themselves with limited alternatives. Additionally, some companies may opt to cut costs by sacrificing product quality, keeping prices steady while reducing production expenses.

How much could tariffs cost households?

Between 2019 and 2024, prices rose by an average of 22 percent, while the average annual income for workers increased by 27 percent. That means real wages only grew by about 7 percent over the five-year period. Importantly, these are just averages—millions of workers have seen prices rise faster than their wages, leaving them in a worse economic position than before the pandemic. President Trump campaigned on lowering household costs, but his imposition of tariffs is expected to increase household spending by roughly $2,400 over the next two years, according to analysis published earlier this month by the Yale Budget Lab.

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