Yes, Even Cookie Monster Is Upset About ‘Shrinkflation’
Muppet’s rant against cookie prices sparks political reaction, White House response
3 min
Cookie Monster is a blue furry muppet who lives on a fake street, but even he is sick of a real menace in supermarket aisles.
“Me hate shrinkflation!,” the “Sesame Street” character wrote to his 626,000 followers on X. “Me cookies are getting smaller.”
Shrinkflation—when companies shrink their products but not the price—has been a hot topic as Americans spend more of their disposable income on food than they have in 30 years . Shrinkflation saves companies money, but politicians have called it greed. It’s been showing up everywhere: fewer sheets of toilet paper in a roll; less juice in a bottle; or in Cookie Monster’s case, smaller cookies that cost the same as when they were bigger.
President Biden has been critical of shrinkflation lately, calling it “a rip-off” by companies who he said are giving Americans less for every dollar they spend.
“As an ice-cream lover,” Biden said in an Instagram video posted last month on the same day as the Super Bowl, “what makes me the most angry is that ice-cream cartons have actually shrunk in size but not in price.”
On Monday, the White House weighed in on Cookie Monster’s post.
“C is for consumers getting ripped off,” the White House posted on X . “President Biden is calling on companies to put a stop to shrinkflation.”
Sen. Elizabeth Warren (D., Mass.) told Cookie Monster she and Sen. Bob Casey (D., Pa.) “have a bill for that.”
Called the Shrinkflation Prevention Act, the bill was introduced by the Democratic senators last week. It would give the Federal Trade Commission and state attorneys general the authority to punish companies engaging in shrinkflation.
Snacks such as chips and cookies have become 26% more expensive since January 2019, according to a report by Casey released in December . Nearly 10% of the price increase was due to shrinkflation, the report said.
Oreo fans have noticed less cream in the black-and-white cookies, but the company behind them has said there hasn’t been a change to the cookie-to-cream ratio. French supermarket chain Carrefour started attaching labels to products in September warning shoppers of what it deems to be shrinkflation. And even the rich and famous have noticed: Rapper Cardi B has ranted about high inflation and rising lettuce prices . “Naaaaaa,” she tweeted last year, “grocery shopping prices are ridiculous right now.”
David Chavern , the chief executive of the Consumer Brands Association, which represents major food makers, said industry leaders understand the pressures of inflation on Americans and have asked to meet with Biden.
“This is a serious issue and needs responsible leadership, not gimmicks or muppet memes,” he said. “In the meantime, we will continue our efforts to provide the best products at the most competitive price.”
“Sesame Street” characters have been diving into real world issues on social media, gaining differing reactions from politicians.
When the Covid-19 vaccine was approved for children, Big Bird tweeted he got the shot.
“My wing is feeling a little sore, but it’ll give my body an extra protective boost that keeps me and others healthy,” he wrote .
Republican Texas Senator Ted Cruz tweeted that it was , “Government propaganda…for your 5 year old!”
In January, Elmo asked a question on X : “How is everybody doing?,” only to get inundated with replies from people talking about their mental health and saying how bleak their lives are, garnering a tweet from Biden.
“I know how hard it is some days to sweep the clouds away and get to sunnier days,” Biden responded to the red muppet . “Our friend Elmo is right: We have to be there for each other, offer our help to a neighbour in need, and above all else, ask for help when we need it.”
Representatives for “Sesame Street” didn’t respond to requests for comment Tuesday.
As for Cookie Monster’s shrinkflation rant, Edgar Dworsky is happy to have more allies.
“I’ve been campaigning against shrinkflation for more than three decades,” said Dworsky, who calls out companies engaging in shrinkflation on his websites ConsumerWorld.org and MousePrint.org. “I welcome the help of such prominent figures as Cookie Monster and of course, the president.”
In the meantime, Cookie Monster seems to have found his own shrinkflation solution.
“Guess me going to have to eat double da cookies!,” he tweeted .
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The budget is being framed ahead of a federal election expected to be held in early 2025
2 min
SYDNEY—Australian Treasurer Jim Chalmers will deliver the government’s 2024-2025 federal budget next Tuesday amid concerns that strong revenue growth will tempt him toward a jump in spending, stoking the case for higher interest rates.
Economists expect Chalmers to announce a budget surplus for 2023-2024, supported in part by high commodity prices and strength in the job market, with unemployment continuing to hover near its lowest level in half a century.
The question on the lips of the governor of the Reserve Bank of Australia, Michele Bullock , will be how much of that revenue will flow back into the economy by things like added measures aimed at easing a cost-of-living surge for consumers.
Bullock told reporters Tuesday that the RBA’s board had considered a further rise in interest rates, sending a shot across the bow of the center-left Labor government ahead of the budget.
The budget is being framed ahead of a federal election expected to be held in early 2025.
The public acknowledgment of the RBA board’s discussion of what would be a 14th interest-rate rise in two years signaled that the central bank has grown more concerned about the inflation outlook after first-quarter data came in above its own expectations.
Economists have warned that the RBA isn’t even close to a decision to cut interest rates, and the more likely outcome at the moment is that the central bank will need to tighten the policy screws further before the end of this year.
“The challenge fiscal policymakers face is that although they are flush with revenue, a cautious approach ought to be taken to additional spending because the economy is still operating at full employment, and inflation is still too high,” said Paul Bloxham, chief economist at HSBC Australia.
“Loosening fiscal policy settings at this point could mean that monetary policy would need to be tightened further yet—or that rates need to be higher for longer,” he added.
The RBA is conscious of the fact that significant income tax cuts will be delivered midyear and that they target low- and middle-income earners, who are more likely to spend added income than save it.
The government has already signalled its plans to spend in the area of subsidies for local manufacturing, including for the production of solar panels.
In addition, the budget will focus on business tax incentives, increased defence spending, funding for domestic violence support, changes to student debt policy and infrastructure.
Chalmers has played down the risk over the budget stoking the flames of inflation.
“It will be a responsible budget, a restrained budget, and it will maintain our focus on that inflation fight,” he said Thursday in a radio interview.
“There will be help for people with the cost of living, but we’ll make sure that that cost-of-living help is part of the solution and not part of the problem when it comes to inflation,” he added.
A risk that the RBA will also be alert to is the probability that the government will hold back some of its revenue gains to support added spending closer to the election.
Josh Williamson , chief economist at Citi Australia, said Chalmers will likely push new spending into the future to avoid overheating the economy now.
“The government does not want to be seen promoting policies that add to the risk of further policy tightening,” he said.
This suggests that new spending will be pushed into the government’s forward budgetary projections, while measures that directly reduce inflation could be announced virtually immediately, Williamson added.
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