WHAT IS SNEAKFLATION? – A QUICK OVERVIEW AND EXPLAINER

Sneakflation is a modern economic term that describes the subtle ways companies raise prices without technically increasing the sticker price of a product. As opposed to shrinkflation—where the product size decreases while the price stays the same—sneakflation involves changes that are harder to spot. These can include lowering the quality of ingredients, reducing product durability, removing features, or quietly adding fees, all while keeping the base price unchanged.

The goal of sneakflation is simple: To preserve profit margins without triggering consumer backlash. Businesses know that overt price hikes can lead to public frustration or lost sales. By “sneaking” in cost-cutting measures that are less noticeable, they can manage rising production costs (like labor or materials) without alarming shoppers. Over time, however, consumers may feel like they’re paying more for less—even if they can’t immediately pinpoint why.

For example, a clothing brand might switch to cheaper fabric, a software company could remove a once-free feature and offer it only in a premium tier, or a restaurant might cut portion sizes while keeping menu prices stable. The overall consumer experience declines, but unless someone is paying close attention, the change may go undetected at first.

Sneakflation is particularly common during periods of high inflation, like those seen globally in recent years. With prices rising across the board, companies face mounting pressure to adjust. But instead of risking customer loyalty with obvious hikes, they opt for more subtle strategies.

Consumers can protect themselves by being observant—reading ingredient lists, checking product specs, and comparing past purchases. While sneakflation isn’t illegal, it does raise ethical concerns about transparency and fairness.

In the end, sneakflation reflects a broader tension in today’s economy: The challenge of balancing business survival with consumer trust. As inflation continues to impact daily life, understanding terms like sneakflation can help shoppers make more informed decisions and recognize when they’re getting less than they bargained for.