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Title page 1

Contents 3

Highlights 2

Letter 6

Background 9

Product Downsizing in the Marketplace 9

Relevant Federal Laws and Regulations 12

Capturing Size Changes in the Consumer Price Index 13

Product Downsizing Contributed Little to Overall Inflation but Has Affected Certain Products More Than Others 16

Product Downsizing Is a Longstanding Practice but Has Little Overall Effect on Inflation 16

Product Downsizing Has Affected Inflation More for Certain Products 18

In Selected Product Categories, Higher-Selling Items Were More Likely to Be Downsized 20

Consumers' Response to Product Downsizing Is Influenced by Product Characteristics, Preferences, and Other Factors 24

Consumers Are Generally Less Responsive to Product Downsizing Than to Price Increases 24

Product Characteristics, Preferences, and Household Income Affected Consumers' Response to Downsizing 26

Policy Options Could Increase Transparency Around Downsizing but Pose Challenges 28

Labeling Requirements for Downsizing 28

Uniform Unit Pricing 31

Using Retail Scanner Data to Monitor Product Size Changes 34

Other Policy Options 36

Agency Comments 37

Appendix I. Objectives, Scope, and Methodology 39

Appendix II. Analysis of Bureau of Labor Statistics Data 47

Appendix III. Analysis of Retail Scanner Data 57

Appendix IV. GAO Contacts and StaffAcknowledgments 62

Tables 3

Table 1. Effect of Downsizing on Consumer Price Index (CPI) by Product, December 2019-December 2024 50

Table 2. Percentage of Items Within Selected Products Affected by Downsizing Across Size-Change Thresholds 59

Table 3. Percentage of Item Sales Affected by Downsizing Within Selected Products Across Size-Change Thresholds 60

Figures 3

Figure 1. Examples of How Prices Can Change for a Downsized Item 9

Figure 2. Examples of Product Downsizing with Slight Packaging Changes 10

Figure 3. Examples of Product Downsizing with Noticeable Packaging Changes 11

Figure 4. Price Collection for the Consumer Price Index 14

Figure 5. Consumer Price Index (CPI) Expenditure Weights for Urban Consumers, as of December 2024 15

Figure 6. Reports of Downsized and Upsized Items in the BLS Consumer Price Index Sample, by Month, 2015-2024 17

Figure 7. Impact of Size Changes on Per-Unit Coffee Prices in the Consumer Price Index (CPI), Dec. 2015-Dec. 2024 20

Figure 8. Extent of Product Downsizing by Product Category, 2021-2023 22

Figure 9. Average Per-Unit Price Increase for Downsized Items by Product Category, 2021-2023 23

Figure 10. Example of Unit Pricing Display 32

Figure 11. Example of Inconsistent Units of Measure and Placement on Unit Price Labels 34

Figure 12. Impact of Size Changes on Per-Unit Cereal Prices in the Consumer Price Index (CPI) 52

Figure 13. Impact of Size Changes on Per-Unit Cleaning Product Prices in the Consumer Price Index (CPI) 53

Figure 14. Impact of Size Changes on Per-Unit Household Paper Product Prices in the Consumer Price Index (CPI) 54

Figure 15. Impact of Size Changes on Per-Unit Nonprescription Drug Prices in the Consumer Price Index (CPI) 55

Figure 16. Impact of Size Changes on Per-Unit Personal Care Product Prices in the Consumer Price Index (CPI) 56

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