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A new phenomenon is taking hold the world - "shrinkflation". This is when companies reduce the size their products or range of services while maintaining prices. It is reaction to the rising prices raw materials needed the production process. Another tactic being used is to place smaller numbers items in larger boxes, providing an illusion to shoppers that they are getting more their money. Shrinking the size of products is in effect a cost-cutting strategy. Manufacturers are relying psychology here. They know that consumers are more sensitive to price than quantity or quality. Most shoppers will still make a regular purchase, even if it has shrunk, as long as the price has not risen.

The chocolate bar maker Cadbury has resorted to shrinking the size one of its flagship products 10 per cent to maintain its bottom line. A company spokesperson said: "We look to absorb costs... this difficult environment [so] we've had to make the decision to slightly reduce the weight [chocolate] bars the first time 2012, so that we can keep them competitive." The service industry is also being inventive to try to refrain raising prices. The hotel chains Hilton and Marriott have made daily housekeeping services "opt ". This means that guests must now request the cleaning their room. Many other free services we have taken for granted are the wane and being shrunk.

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