Yes, sizes are reduced to keep from raising prices It is a shell game. Ice cream used to come in half-gallons, so instead of raising the price they make the containers smaller, changed the shape, and kept the price the same. 1/2 gal became 1.75 quarts. Most people don’s pay that close attention to what they are buying.
Walmart is very slippery when it comes to pricing.
Digit inversion is one of their favorite tricks.
$1.69 -> $1.96
Reducing size is raising prices. Just backwards.
This has been standard practice since the massive inflation in the 70s.