Skimpflation

We propose a new word to describe this stealth-ninja kind of inflation: skimpflation. It's when, instead of simply raising prices, companies skimp on the goods and services they provide.

Source: wiktionary

Some economists have pegged a new word to this phenomenon where, rather than raise prices, companies cut services previously provided: skimpflation. Skimpflation could mean reduced staff, thus longer lines or phone hold times.

Source: wiktionary

Companies face an appalling dilemma, said Laith Al-Khalaf in The Sunday Times – pass on increased costs to consumers “and risk losing them to rivals”, or “absorb the hit”. No wonder many are opting for a third path: “skimpflation”. The trick is to erode “the quality of their goods” – say, by “menu engineering” to focus on cheaper foods – in the hope that “hoodwinked” consumers either don't notice or don't care.

Source: wiktionary

Sadly it's a sign of the times, and consumers will have to get used to this practice of skimpflation, where brands reduce the value of their services to remain profitable.

Source: wiktionary