Shrinkflation is a means of inflation where, rather than the price of a product increasing, the size, and therefore value, of the product decreases. A good example is chocolate bars: in 2014 a Toblerone gave you 200g of chocolate. In 2018, it gives you 150g – revealing shrinkflation of 25%.
Shrinkflation is often a way of for manufacturers to pass on the rising cost of production (often due to inflation) to their customers. It’s important to remember that while the size of a product decreases it doesn’t guarantee the cost will stay the same – it will often go up.