Yes, it is generally considered shrinkflation[1] and the author does mention that. It can be overcome by measuring unit prices for items. However, in cases like the lack of services and delays - it doesn't really capture it.

I've often noticed extremely long wait times for customer service calls due to reduced staffing. These are numbers that are missed in the official CPI calculations.

1 - https://en.wikipedia.org/wiki/Shrinkflation