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Spotting inflation: from prices to portions

Inflation can show up in a few different ways — from your fish and chips getting more expensive to smaller scoops for the same price. Here’s what to look out for.

3 min read

Inflation

Inflation can be low and stable, which is what we aim for. It can also be too high.

When inflation is too high

Everything’s getting pricier too quickly.

For example, your fish and chips used to cost $10.

Now they cost $15 and the price of everything else has gone up too.

Your pay might have increased a bit, but it still feels like your money isn’t stretching as far.

When inflation is low and stable

Prices are going up by a small amount in a predictable way.

For example, your fish and chips used to cost $10.

Now they cost $10.20 and, on average, the prices of everything else have gone up by a small amount too.

But your pay has also increased, so the small increases in prices aren't hurting your wallet too much. This makes it easier for you to plan ahead.

Chart titled 'Inflation' compares the price of fish and chips under high and low inflation between 2025 and 2026. Both scenarios start at about $10 in 2025. Under high inflation, a dark line rises steeply, with the price increasing to just over $15 by 2026. Under low and stable inflation, a pink line remains almost flat, with the price increasing only slightly to just above $10 by 2026. The chart shows that high inflation results in fish-and-chip prices rising much faster, while low inflation keeps prices relatively stable.

Stagflation (prices rising, the economy is struggling)

Your fish and chips used to cost $10.

Now they cost $15.

But at the same time, the shop owner is struggling. Businesses around you are closing. Jobs are harder to come by.

You might be feeling uncertain about your own job — and some of your mates may already be out of work.

Chart titled 'Stagflation' shows the price of fish and chips rising sharply between 2025 and 2026. A pink line increases from about $9 in 2025 to around $16–17 in 2026, indicating higher prices. “Sorry, We’re Closed” sign appears near the higher price point, suggesting that businesses may struggle or shut down during stagflation. The chart illustrates that stagflation combines increasing prices with weak economic conditions, making everyday items like fish and chips more expensive while economic activity declines.

Shrinkflation (same price, smaller scoop)

Your fish and chips still cost $15. But the scoop of chips is getting smaller, and instead of 2 pieces of fish, you're only getting one.

You’re paying the same as you were a year ago, but you’re getting less.

Chart titled 'Shrinkflation' shows the price of fish and chips remaining unchanged at about $15 between 2025 and 2026, represented by a flat pink line. In 2025, the serving consists of two large pieces of fish and a generous portion of chips. By 2026, the serving is noticeably smaller, with fewer chips and a smaller portion overall, despite the price staying the same. The chart illustrates shrinkflation, where consumers pay the same price but receive less product, reducing value without an apparent price increase.

Cheapflation (same price, not as nice)

Your fish and chips still cost $15.

But instead of hoki, now you’re getting fish fingers.

The chips aren’t quite as crispy or tasty as they used to be either.

Chart titled 'Cheapflation' shows the price of fish and chips remaining steady at about $15 between 2025 and 2026, represented by a flat pink line. In 2025, the product is shown as a traditional serving of fish and chips. By 2026, although the price is unchanged, the image changes to a smaller, lower-cost fish product like fish fingers, suggesting a reduction in quality or value. The chart illustrates cheapflation, where businesses keep prices the same by substituting cheaper ingredients or lower-quality products rather than increasing prices.

Deflation (prices falling, the economy is slowing)

Your fish and chips used to cost $15. Now they cost $10.

At first, that feels like a win because everything’s cheaper.

But then you notice more shops closing, and more people losing their jobs.

Chart titled 'Deflation' shows fish and chip prices fall from about $16 in 2025 to about $9 in 2026. A downward-sloping pink line shows the price decreasing over time. A "Sorry, we're closed" sign appears in 2026, indicating that businesses may struggle when prices keep falling. The chart shows that deflation leads to lower prices, which can reduce business income and contribute to business closures.

Why this matters

These are all different ways your money can change in what it actually buys you over time. It might show up in higher prices, smaller portions, lower quality, or greater job insecurity — sometimes all at once.

Understanding the difference helps you make sense of how inflation is affecting your everyday spending.

So next time your fish and chips don’t feel like the same deal, there’s probably a reason why.