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Home / Northern Advocate

Shrinkflation adds to cost woes for Northlanders amid rising living costs

Jenny Ling
By Jenny Ling
Multimedia Journalist·Northern Advocate·
8 Jun, 2025 05:00 PM4 mins to read

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Los Angeles protests flare up as National Guardsmen are sent in and there's uncertainty over how popular the Government's new parent boost visa will be. Video / NZ Herald, AFP
  • Northlanders are experiencing “shrinkflation”, where product sizes decrease but prices remain the same or increase.
  • Residents such as Mary-Pat Ross and Zena have noticed smaller portions in cafes and supermarkets.
  • Consumer NZ’s Jon Duffy highlighted shrinkflation’s impact on budgets during the cost-of-living crisis.

Northlanders already dealing with soaring living costs are increasingly noticing “shrinkflation” in the shops.

Many residents feel they’re getting less bang for their buck at the supermarket and some eateries as products and portions reduce in size, while the prices remain the same, or even increase.

Author and early childhood teacher Mary-Pat Ross, from Kerikeri, said she’d noticed some food portion sizes at cafes were smaller, likely because they too “were struggling”.

“Some of the sizes of what you used to buy are smaller, and there might be another dollar added onto it,” Ross said.

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“But I realise everything is going up; I still want to support them, but I may not go as frequently.

“It’s not coming from an attitude of greed; it’s an attitude of trying to make ends meet.”

Mary-Pat Ross, from Kerikeri, said she’s noticed some food portion sizes at cafes are smaller due to "shrinkflation". Photo / Jenny Ling
Mary-Pat Ross, from Kerikeri, said she’s noticed some food portion sizes at cafes are smaller due to "shrinkflation". Photo / Jenny Ling

Infometrics chief executive and principal economist Brad Olsen agreed shrinkflation “seems to be increasingly coming through as businesses are looking at cost-of-living pressures”, but believed it was not yet widespread.

Consumer NZ chief executive Jon Duffy said his organisation had also “noticed a growing trend of shrinkflation, where products shrink in size or quantity while prices stay the same or increase”.

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“While the practice is nothing new ... it’s another blow to how far the budget goes in the cost-of-living crisis.”

According to a 2023 Global Inflation Monitor survey of 33 countries in 2023, 46% of consumers said they had noticed shrinkflation.

It’s even higher for New Zealanders, with 55% noticing the tactic and the same number saying the practice was unacceptable as a way of responding to rising costs.

Infometrics chief executive and principal economist Brad Olsen suggested checking unit prices to accurately compare products when shopping. Photo / Tania Whyte
Infometrics chief executive and principal economist Brad Olsen suggested checking unit prices to accurately compare products when shopping. Photo / Tania Whyte

Zena, from Kāeo, said she’d noticed packets of biscuits and chocolate bars were smaller.

But because they weren’t essential items, “you can always choose not to buy them”, she said.

The lifestyle block owner, who did not want to give her surname, had also noticed coffee being served in smaller cups while the price was the same as a regular or large cup.

“But I don’t begrudge any of that because their rent and power are probably going up the same as ours,” Zena said.

“You can always make your coffee at home instead of complaining.”

Heather Wheeler, from Kerikeri, had also noticed some packets of biscuits and chocolate bars were smaller at supermarkets.

“The packet is the same size, but the biscuits are certainly not.

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“Most confectionery is the same.

“It [shrinkflation] is definitely a thing.”

Zena, from Kaeo, has noticed coffee being served in smaller cups while the price was same as a regular or large cup.
Zena, from Kaeo, has noticed coffee being served in smaller cups while the price was same as a regular or large cup.

Olsen said: “We’re certainly hearing more about it.”

Pricing pressures were “across the board from base-level producers all the way up”.

“It’s inflation in one sense or another ... you’re either paying more for the same amount or paying the same for a lesser amount.

“It’s harder to spot sometimes than a straight-up price change.”

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Duffy said New Zealanders had been taking their concerns about shrinking products to Consumer NZ.

Examples include certain brands of cheese, marmalade, pet food, crackers and chocolate.

Late last year, a Mangawhai resident was outraged at a takeaway charging $4.50 for 34 chips - or just over 13c a chip.

While the owner said he hadn’t changed the pricing from the previous owner, the resident posted her frustration on social media.

Residents weighed in, with some defending the store’s prices because the cost of oil had gone up, along with power, rent, wages and delivery fees.

Olsen suggested people look carefully at the unit price when shopping at supermarkets.

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“You start getting an idea of how much you’re paying for these products, and it lets you compare against other products there.”

How to avoid shrinkflation

  • Focus on comparing unit prices of different products and sizes. Unit prices show the cost per unit measure, for example, per 100g. This allows you to accurately compare the true cost of products, even if they are packaged differently. 
  • Consider buying whole foods instead of pre-packaged products as these items are typically not as susceptible to shrinkflation. 
  • Explore alternatives like store brands or switch to different brands or retailers. 

Jenny Ling is a senior journalist at the Northern Advocate. She has a special interest in covering human interest stories, along with finance, roading, and animal welfare issues.

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