How does 8% inflation correlate with the 30-50% increase in the price of products also accounting for shrinkflation?

Question

Edit: thanks to everyone especially those of you that have really detailed answers. I’ve learned a lot .

In: 448

Answer 1

8% is for basic items that there is plenty of price competition for. The 20-30 percent is going to be for nicer things that may not be a necessity.