Shrinkflation: They’re Stealing Money from Your Pockets

By Cookie Danchaivijitr, 2026

“Me hate shrinkflation! Me cookies are getting smaller,” Cookie Monster complained on platform X on March 4, 2024. As one named ‘Cookie,’ I could not agree less. Grocery shoppers nationwide have felt like they’ve been lied to by companies, paying for the same price but for fewer goods. Bags of chips have become smaller, but the prices have held their ground. Boxes of tissues have been running out earlier, but the prices have held their ground. This phenomenon is called ‘shrinkflation.’

You might have heard of ‘inflation’—an overall increase in the prices of goods and services in an economy. Shrinkflation is simply a way to hide this inflation. Companies are downsizing the dimensions of their products while charging the same or even higher prices for them. This might be due to an increase in demand in the market, higher production costs, etc. Some comparisons before and after at supermarkets include a bag of chips decreasing from 9.75 to 9.25 oz, a box of crackers decreasing from 16 to 14 oz, and a roll of toilet paper decreasing from 340 to 312 sheets. Although consumers may not notice these changes immediately, and if shrinkflation continues, their effects will become evident and could backfire on the companies in the future. 

Companies choose to downsize instead of increase the prices for a simple reason: consumers pay more attention to prices than sizes. When consumers see that the price of a product is cheaper, they innately believe that this must be the best deal out there, neglecting the fact that similar products are more expensive as they offer more and could be more cost-effective. These shrinkflation efforts are also more difficult to be reflected in the inflation rates as they are largely qualitative, which could lead consumers to turn a blind eye to this issue. One way for consumers to combat this deception is to pay attention to the unit prices or use a calculator to compare the product prices per unit.

Shrinkflation is technically legal. According to the Fair Packaging and Labeling Act 1967, “packages and their labels should enable consumers to obtain accurate information as to the quantity of the contents and should facilitate value comparisons.” So, if businesses mark their products with the correct labelings, they can change the size of their product as they see fit. However, this is bound to change. 

On February 11, 2024, the White House released a video of President Joe Biden discussing shrinkflation as part of celebrating the Super Bowl: “I’ve had enough of what they call shrinkflation. It’s a rip off… Give me a break. The American public is tired of being played for suckers.” Later, on March 5, 2024, Biden announced that the administration is taking an initiative to crack down on illegal pricing and hold companies accountable for their actions, alongside the Department of Justice and Federal Trade Commission. Hopefully, these actions will be sufficient before the bag of Lays chips shrinks even more.

Works Cited

The New York Times. 2024. “Shrinkflation 101: The Economics of Smaller Groceries,” 2024. https://www.nytimes.com/2024/03/01/business/economy/shrinkflation-groceries.html.

Konish, Lorie. 2024. “What Is Shrinkflation? Here’s Why Consumers May Be Getting Less for Their Money.” CNBC. CNBC. March 17, 2024. https://www.cnbc.com/2024/03/17/shrinkflation-why-consumers-might-be-getting-less-for-their-money.html.

‌Limehouse, Jonathan. 2024. “‘Me Hate Shrinkflation!’: Cookie Monster Complains about US Economy, White House Responds.” USA TODAY. USA TODAY. March 5, 2024. https://www.usatoday.com/story/money/2024/03/05/cookie-monster-shrinkflation-tweet-white-house-response/72852339007/.

‌Bennett, Jeannette N. 2022. “Beyond Inflation Numbers: Shrinkflation and Skimpflation | St. Louis Fed.” Stlouisfed.org. https://files.stlouisfed.org/research/publications/page1-econ/2022/12/01/beyond-inflation-numbers-shrinkflation-and-skimpflation_SE.pdf.

United States Code. "Chapter 39—Fair Packaging and Labeling Program," in U.S. House of Representatives Office of the Law Revision Counsel, Title 15—Commerce and Trade. Washington, DC, 1967; http://uscode.house.gov/view.xhtml?req=granuleid%3AUSC-prelim-title15-chapter39&edition=prelim.

The White House. 2024. “FACT SHEET: President Biden Announces New Actions to Lower Costs for Americans by Fighting Corporate Rip-Offs | the White House.” The White House. The White House. March 5, 2024. https://www.whitehouse.gov/briefing-room/statements-releases/2024/03/05/fact-sheet-president-biden-announces-new-actions-to-lower-costs-for-americans-by-fighting-corporate-rip-offs/.

White House. (2024, February 11). President Biden discusses shrinkflation. YouTube. https://youtu.be/GcVTzgZyGro?si=-5j626P5uGcgUzgD