Shrinkflation across borders: examining Japan’s response and global implications amid rising inflation

Justyna Franc-Dąbrowska, Igor Vaverka and Magdalena Daria Vaverková ()
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Justyna Franc-Dąbrowska: Warsaw University of Life Sciences, Institute of Economics and Finance
Igor Vaverka: Masaryk University, Department of Japanese Studies, Faculty of Arts
Magdalena Daria Vaverková: Warsaw University of Life Sciences, Department of Sustainable Construction and Geodesy, Institute of Civil Engineering

International Review of Economics, 2026, vol. 73, issue 1, No 2, 22 pages

Abstract: Abstract This study examines the phenomenon of shrinkflation in Japan, focusing on its origins, implications, and role in the broader inflationary context. As a response to rising production costs, shrinkflation enables producers to maintain competitiveness by avoiding direct price increases and limiting consumer backlash. The study highlights Japan’s historical experience with deflation and price rigidity, which contributes to heightened consumer sensitivity to price changes. While often perceived as unfair by consumers, shrinkflation is preferred to direct price increases, particularly in the food sector, where it can help reduce waste. The research suggests that transparent communication about price changes builds consumer trust and brand loyalty, making it a more sustainable strategy than shrinkflation. The findings point to the importance of taking cultural and economic conditions into account when analyzing shrinkflation and underscore the need for further research into its effects in different countries and within Japan’s Consumer Price Index.

Keywords: Hidden inflation; Price strategies; Price transparency; Socio-economic conditions in Japan; Behavioral economics (search for similar items in EconPapers)
JEL-codes: D12 E31 M31 (search for similar items in EconPapers)
Date: 2026
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DOI: 10.1007/s12232-025-00514-w

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