The standoff in the Strait of Hormuz has already made fuel and energy noticeably more expensive. But energy prices are only part of the story.

While tensions continue between Iran and the US over that vital stretch of water, another, more subtle economic effect could come into play. “Skimpflation” is the name for a phenomenon that involves a gradual decline in the quality, quantity or service associated with everyday goods.

Unlike shrinkflation, where the size or weight of a product is reduced, skimpflation affects the value that consumers receive. It happens when companies attempt to keep prices the same while quietly reducing quality, ingredients or service levels.

So instead of raising the price of a ready meal, for example, a manufacturer may replace or reduce some of the key ingredients with cheaper substitutes. The price and packaging remain the same, but there may be less pork in your sausages, or less beef in your lasagne.

Similar adjustments can also occur in service industries. Restaurants may keep menu prices stable but switch to cheaper........

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