A United Nations gauge of world food prices has jumped more than 70% since mid-2020 and is near a record after the invasion of Ukraine choked off crop exports and rattled supply chains.
Amid a global food crisis and soaring inflation, not only are groceries are becoming more expensive, they're getting smaller too.
“Shrinkflation” is back in vogue as the industry is grappling with soaring costs of everything from wheat to vegetable oils and energy.
Shrinkflation, a portmanteau of the words“shrink” and“inflation' envisages the reduction in the size of a product in response to rising production costs or market competition.
Rather than increase the price of a product, companies simply offer a smaller package for the same sticker price. That is sometimes called inflation by stealth.
Today you can witness shrinkflation, also referred to as“downsizing,” anywhere from Australia to India and the UK.
In the years following the Brexit vote, Britain's Office for National Statistics noticed more examples of product shrinkage, including Mondelez International reducing the weight of some of its Toblerone chocolate bars. They reverted to their original dimensions following an outcry from consumers.
Everything from chocolate to crisps, cereals to soup and even dog food and washing detergent - if it's in a packet - can be shrunk.
Sometimes the price will stay the same and sometimes it's reduced disproportionately to the fall in size or weight, making it harder for shoppers to realize they're getting less for their money.
Most of the big food manufacturers do it, from Nestle to Mondelez, which recently drew criticism for reducing the Cadbury Dairy Milk sharing bar to 180 grams from 200g.
In the US, PepsiCo Inc reduced the number of chips in its Doritos packs, Domino's Pizza Inc put fewer chicken wings in its carry-out offer and Tillamook cut the size of its ice-cream cartons to 48 ounces from 56 oz.
Soaring food and fuel costs recently helped send US inflation to a 40-year high. The US Department of Agriculture now expects retail food prices to gain 5% to 6% this year — roughly double its forecast from three months ago.
So companies are instead coming up with some behind-the-scenes strategies to crimp costs, hence the shrinking portions.
Companies have given various explanations for cutting portion sizes. Some say shoppers prefer to buy a little less if it's still affordable; others argue that it's a way to meet public health targets or protect the environment.
Mondelez said it was the first time in a decade that it reduced the size of its Dairy Milk bars and that it did so to stay competitive.
Some consumers say shrinkflation is a sneaky strategy because businesses use the same packaging but give customers less, arguing that it's an attempt to deceive them.
On the other hand, some brands argue that as prices and sizes of items are clearly labelled, buyers are making informed decisions about their purchases.
For sure, there is no obligation for companies to keep their products the same size or quantity just as there is no obligation for shoppers to buy their products in a market economy.
About 56% of US diners say they would be more willing to pay a little extra if restaurants clearly explain why prices are rising, according to a survey commissioned by MarketMan.
The larger issue is if manufacturers should be more transparent with consumers when they shrink the size of their products.

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