Rising Prices and Inflation: 3 Ways You Might Be Paying More Without Realizing It

If it seems like the price of gas and the cost of groceries have gone up recently, you’re not imagining things. Inflation has been taking a big bite out of consumers’ wallets since last year, with prices jumping by nearly 7 percent last November — the largest annual increase since 1982. 

But rising prices are only an obvious sign of inflation. Brands know that consumers are likely to push back against blatant price hikes, so they may resort to other ways to get consumers to pay more that can be harder to spot. Here are three inflation-related trends to look out for, and what you can do to minimize their impact on your wallet. 

Shrinkflation: Smaller product sizes for the same price 

Food brands are notorious for making their package sizes smaller, meaning you get less of an item at the same price. “Shoppers are less likely to notice a difference in the package size than an out-and-out price increase, which may deter them from buying,” says money-saving expert Andrea Woroch. While the difference is usually subtle — think fewer ounces of chips, or fewer sheets per paper towel roll — the costs can add up when you must replenish these items more often. 

What you can do: Focus on the unit price. It’s easy for brands to disguise the smaller amount of product in packaging you’re used to. But the unit price, or the cost for one item or measurement, can help you make more accurate price comparisons between products. Depending on the item, you may decide to swap in a lower-priced brand or buy in bulk to stretch your dollars further. 

Skimpflation: Fewer services or amenities for the same price

If you’ve ever bought an airline ticket and then been charged a fee for a carry-on bag, you’ve experienced what’s known as “skimpflation.”

“Hotels and airlines are increasingly offering a la carte pricing, so you’ll see an affordable base price but then you have to pay for extras that used to be included, such as seat selection, entertainment and parking,” Woroch says.

What you can do: Review all potential costs and ask about bundle options. Before booking any reservation, make sure to review the total potential costs so you know exactly what you’re getting, Woroch says. That may mean clicking all the way through the various online screens to check for added service fees or other markups.

If you find that the base price doesn’t cover everything you need, “sometimes you can save money by purchasing add-ons that you need or want in a bundle online in advance,” Woroch says. That could mean paying for a checked bag and in-flight snack before heading to the airport. Or, if you’re staying in a hotel that has eliminated its buffet breakfast as part of the room rate, ask for a similar replacement. You might be able to score complimentary snacks or a discount at a nearby restaurant.

Buy now, pay later: Less money upfront encourages impulse purchases

Buy now, pay later (BNPL) services allow you to pay for a purchase in a set number of installments, with the appeal being you pay a smaller amount at the time of purchase. “These payment methods make potential purchases more appealing because the actual cost is less noticeable,” Woroch says. If inflation has hiked up the cost of an item you want to $88, you might pause before hitting the “buy” button — but at $22 over four payments, you might not think twice.

What you can do: Only purchase what you can afford in full. BNPL services can make it easy to indulge in impulse purchases you may not otherwise be able to afford, and many consumers don’t realize that you are charged fees or interest for a missed payment. To make sure an item fits in your budget, it’s usually best to buy and pay now to avoid any lingering payments sneaking up on you.