Shrinking food packages masked nearly 15% volume reduction and increased food inflation by four points

Shrinking food package sizes reduced product volume by nearly 15%, adding almost four points to food inflation between 2012 and 2019. The study distinguishes "shrinkage," the introduction of smaller products, from "shrinkflation," downsizing existing ones. This shrinkage significantly understated measured food inflation. This trend was more prevalent in products bought by higher-income households and in states without unit pricing laws, making it harder for consumers to notice.