Today is a day that has become quietly (or not so quietly) famous in market and global economic circles. Today is the Friday of the annual Jackson Hole Economic Symposium held in the city of same name in Wyoming since 1978. The “summit” is organized by the Federal Reserve Bank of Kansas City and gathers central bankers, economists and policy makers from around the world. Friday at Jackson Hole has evolved to become an occasion when the US Federal Reserve Chairman serves up his or her keynote speech.
One key topic of the speech will be inflation: is inflation still around and how to contain it. Fed Chair Jerome Powell will probably not mention shrinkflation but he will mention inflation.
Back in January 2024, TGIF 2 Minutes took a look at something called “shrinkflation” and how it was affecting the quantity of Doritos in each pack of the famous chips (“…you just can’t have ONE Dorito”).
At the time, certain grocery chains were pulling the chips from shelves – mostly in several European countries.* Why? Partly, to protest possible “shrinkflation”, the occurrence of a company lowering the amount of product in its packaging but charging the same price (which also could be called a “rip off”). At the time, unreasonable price increases by PepsiCo of several of its products were also a factor.
Well, in all sorts of items, shrinkflation still exists. Take a look at certain brands of toilet paper (Scott Tissue vs. Charmin) and certain brands of tissues (Kleenex). The width of rolls of toilet paper has been shrunk by nearly one inch – with no price decrease, and in fact price increases. In tissue-land, in every box there are mysterious random, un-usable strips of tissue that are basically cut-off versions of a tissue, meaning about 1/8 of the box is not useable and thrown away – with no price decrease and in fact price increases.
Back in 2024 for a brief time, Doritos were pulled from the shelves by concerned supermarket chains concerned with holding on to customers. But in August 2025, toilet paper and tissues – among other staple items – remain on the shelves at a more expensive price point with less product in the packaging.
Lately, the published rate of inflation has decreased, but price increases on everyday products and food items are still evident in the US and global economies. The hope by economists is for a continued decrease in the rate of inflation. Central bankers can use interest rates as a tool to “manage” inflation. More to come on this topic after Fed Chair Powell’s speech later this morning – with or without Doritos for breakfast.
*Source: Mauro Orru, Jennifer Maloney, WSJ.com. January 4, 2024.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied upon for, tax, legal or accounting advice.