The Consumer Price Index (CPI) measures changes to the prices and quantity of products over time. When a product is sold in a smaller quantity than before, but for the same price, this is often referred to as shrinkflation.
When a change to product sizing is captured, adjustments are made in the CPI to account for the impact on price. This process is referred to as “quantity adjustment.” Most quantity adjustments made from 2021 to 2023 were for products in the food component of the CPI. During this period, nearly half (49.5%) of instances of quantity adjustments occurred in 2022, when grocery inflation reached its highest annual average in 41 years (+9.8%).
A much higher proportion of name-brand products (77.6%) than house-brand products (22.4%) experienced shrinkflation. From 2021 to 2023, 29.6% of eligible* grocery items tracked in the CPI experienced shrinkflation (*excluding all fresh fruits and vegetables as well as meat products).
Food products with the most instances of shrinkflation include:
- Margarine
- Pasta mixes
- Cookies and crackers
- Mozzarella cheese
- Breakfast cereal and other cereal products
- Cheddar cheese
Published By: Statistics Canada
Publication Date: February, 2025
Click here to access Shrinking products, rising prices: Food-specific quantity adjustments in the Consumer Price Index. Click here to access pdf version.
