'Shrinkflation' strikes shoppers across the country: Companies faced with rising costs are downsizing packages without reducing prices in stealthy move to hit consumers in the wallet

General Mills' Cinnamon Toast Crunch has shrunk from a 19.3 oz package (left) to an 18.8 oz box (right) in an example of shrinkflation that is infuriating consumers

• Many brands are reducing package sizes in a stealthy move to cut costs
• From paper towels to breakfast cereal, consumers are getting less for their dollar
• It is a counterpart to inflation known as 'shrinkflation' or downsizing
• Consumers pay more in the end as they buy more often, but may not realize it

As companies face higher costs for raw materials, some are jacking up prices for consumers, but others are resorting to a stealthier measure by shrinking the package sizes for everyday items such as paper towels and breakfast cereal.

That's contributing to the 5'.4 percent rise in prices consumers are facing for everyday goods - the sharpest annualized price increase since the 1990s.

Also known as downsizing, 'shrinkflation' is the notorious ploy of selling less of an item for the same price, infuriating consumers who wind up getting less for their dollar.

From the cereal maker General Mills to the store brands of Costco and Walmart, many basic goods have shrunk in recent months, as spotted by eagle-eyed consumers.

Though manufacturers have always sought to cut costs and the trend is nothing new, it seems to have accelerated in recent months, as companies face higher prices for raw materials and seek creative ways to cut costs.

Some companies would surely argue that shrinkflation is a consumer-friendly alternative to simply raising prices, helping to prevent weekly grocery bills from ballooning wildly.

But many furious consumers don't appreciate the stealthy tactic, pointing out that they will end up paying more in the end for staple goods, which they now have to buy more often.

'Consumers are price conscious -- they'll spot that price increase -- but they're not net-weight conscious,' Edgar Dworsky, a watchdog at consumerworld.org, told Good Morning America last month.

'If you ask someone how many ounces is in this jar of mayonnaise, or in the cereal box you buy, they're going to shrug their shoulders,' he said.

'That's kind of how manufacturers take advantage because you don't have those sizes memorized,' he added. 'So what consumers can do is they have to become...

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