Have you noticed your shopping basket feeling lighter, even though the bill at the checkout hasn't changed? A packet of chips that once stretched across a movie now disappears before the credits roll. A box of cereal that used to last the school week runs out sooner. An ice cream tub looks the same size on the outside, but inside it holds fewer scoops than it once did.
This quiet trend has a name: shrinkflation. The size of the product shrinks, the price stays the same, and it's only when you get home that you realise you've paid more for less.
Shrinkflation isn't new, but with household budgets tight, it feels sharper than ever. Few shoppers carefully weigh packets or check the fine print on labels. Most of us just reach for the same product we've always bought. When the contents go down but the packaging looks the same, it's easy to miss the change.
That's why the Albanese government is consulting on changes to the Unit Pricing Code. The aim is straightforward: to make it easier for Australians to see what they're paying for and to compare value between products.
Unit pricing tells you the cost per litre, per kilo or per 100 grams. It helps you work out whether the larger pack is really better value, or whether a different brand gives you more for your money. Done well, it's one of the simplest tools to keep supermarkets competitive. But it doesn't always work as it should. Sometimes the unit price is too small to read. Sometimes the measure varies between products, making comparisons confusing. And some retailers aren't covered by the rules at all.
Our government's consultation, which opens this week, will look at a range of ideas. One is a notification regime that would require supermarkets to let shoppers know when a product gets smaller. Another is ensuring that unit prices are more visible and easier to read, so people don't need a magnifying glass at the shelf. We're also looking at expanding the code so that more retailers, including those online, are covered. And we're considering how to standardise the measures used for things like toilet paper or pet food, so shoppers can compare more easily.
There's also the question of penalties for non‑compliance. At the moment, the rules rely heavily on goodwill. Civil penalties would help ensure that the requirements are taken seriously.
These aren't changes that can be made overnight. That's why we're consulting widely - with consumers, retailers, farmers and manufacturers - to make sure we get the balance right. Businesses have legitimate concerns about cost and implementation. Shoppers want clearer, simpler information. The task is to find reforms that are practical, effective and fair. We're keen to hear from you, so if you'd like to share your views, go to the Strengthening the Unit Pricing Code consultation.
It's worth being clear: none of this stops shrinkflation entirely. Companies will still make their own decisions about pack sizes and prices. What these changes aim to do is make those decisions more visible to consumers. When the information is clear, shoppers can decide for themselves whether a product still represents good value.
The reforms are part of our wider effort to help Australians get a fairer deal at the checkout. We've increased the ACCC's powers to act on harmful and misleading conduct. We've supported CHOICE to provide more information on supermarket prices. We've lifted penalties for breaches of competition and consumer law, and taken steps to tackle price gouging. Each of these measures strengthens the hand of consumers in a concentrated supermarket sector.
Shrinkflation is frustrating because it happens quietly. The box, the bottle, the tub looks the same, but the contents have changed. Clearer labelling and consistent unit pricing won't end the practice, but they will make it easier to see what's happening. And when you can see it, you can make an informed choice about whether to keep buying or to switch to something else.
That's the principle behind these reforms. Shoppers deserve clarity, and competition works best when information is open and transparent.
Because at the end of the day, the only thing Australians want shrinking at the supermarket is the bill.
