Consumer advocacy group Choice has identified Coles and Woolworths as offenders of shrinkflation with their homebrand items.

The Albanese government is launching a crackdown on 'shrinkflation' in supermarkets, where product sizes decrease while prices remain the same or increase.

Shrinkflation is a tactic where manufacturers reduce product sizes while keeping prices the same, often going unnoticed by consumers.

Recently, the ACCC initiated legal action against Coles and Woolworths for allegedly misleading customers regarding discount pricing.

Woolworths allegedly engaged in shrinkflation for 266 products over 20 months, while Coles did so for 245 products over 15 months.

An example noted was Coles’ Mighty Grain cereal, which remained priced at $4.50 while the package size decreased from 560 grams to 495 grams.

To combat these practices, the government plans to strengthen the unit pricing code, improve the legibility of price tags, and standardize units of measure across supermarkets.

Prime Minister Anthony Albanese will announce measures aimed at improving consumer awareness regarding product sizes and pricing.

The ACCC will receive funding for a consumer awareness campaign to educate Australians on how unit pricing can benefit them.

Albanese emphasized that tackling shrinkflation is part of the government's broader strategy to secure better deals for consumers.

The unit pricing code has been shown to cost supermarkets little to implement while saving shoppers time and money.

Supermarkets found violating the new pricing code will face significant penalties, potentially in the millions.