In the News

Skimpflation - is the quality of service dropping as prices rise?

Graham Watson

7th November 2021

I like being introduced to new concepts - in this case, 'skimpflation'where service sector suppliers are less concerned with standards of service.

The example given is the airline industry, with last weekend seeing a large number of flights cancelled or delayed across the US, and airlines seemingly prepared to accept this as a result of labour shortages and supply chain problems.

Thus, going forward, will skimpflation be to services what shrinkflation is to manufacturing?

Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.

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