Biden Calls Out 'Shrinkflation' in State of the Union, Seeks Ban on Companies Secretly Raising Prices

Biden calls out "shrinkflation," when companies secretly raise prices by reducing product sizes, in his State of the Union speech. This is part of a strategy to reframe economic issues before the election.

Shrinkflation accounts for a modest but meaningful part of higher prices since 2019. Biden blames big business while the GOP blames his pandemic relief package.

Companies used shrinkflation rather than raising list prices, thinking customers would prefer it. But Biden says it's "late-stage 'greedflation'" when prices can't go higher.

Biden wants to pass a bill by Sen. Casey that would ban shrinkflation by enabling the government to penalize companies for the practice.

Despite low unemployment and many new business applications, voters focus on inflation, which has drifted down to 3.1% annually but still worries shoppers.