Q. Which of the following statements accurately describe the term ‘shrinkflation’?

1. It refers to the practice of reducing the size of a product while keeping its price unchanged.
2. It is considered a form of hidden inflation.

Select the correct answer using the codes given below:
Answer: Both 1 & 2
Notes: Shrinkflation involves reducing the quantity or size of a product while maintaining its price, effectively masking inflation. This practice is prevalent in sectors like food and beverages. Shrinkflation is viewed as hidden inflation because the price per unit increases without an overt price hike. Both statements correctly describe the concept.