Reserve Bank of Australia Deputy Governor Andrew Hauser has encouraged consumers to “vote with their feet” when they encounter unfair price increases or shrinkflation, acknowledging public frustration over corporate pricing strategies.

Speaking on the Guardian’s Australian Politics podcast, Hauser said he understood why Australians feel aggrieved when companies implement sudden price hikes or reduce product sizes without lowering costs—a tactic commonly known as shrinkflation.

Inflation: A Broad Challenge

Hauser emphasized that inflationary pressures are not coming from any single sector of the economy. While people may feel anger toward certain companies, the reality is that price growth is widespread and influenced by multiple factors, including supply chain issues, labor costs, and global market conditions.

“People will take views about particular corporate strategies and pricing, and we saw all of that during Covid, didn’t we, shrinkflation and all the rest of it,” Hauser explained. His comments suggest that while some price increases are corporate-driven, the broader inflation trend has structural roots.

‘Vote With Your Feet’

The RBA deputy’s message to consumers was clear: if you feel a company is unfairly inflating prices, switch to competitors or adjust your spending habits. By making these choices, consumers can push back against corporate strategies that may exploit market conditions or temporary shortages.

“I hope people, [and] I’m sure people do, vote with their feet when they think that companies have been taking the p,” Hauser said. This consumer-driven approach aligns with market mechanisms where demand influences pricing and encourages companies to reconsider strategies that could alienate customers.

Historical Context: Lessons from Covid

Hauser referenced the pandemic period as an example of how companies sometimes adjust pricing and product sizes in ways that frustrate consumers. Shrinkflation became particularly visible during lockdowns, when essential goods and groceries saw size reductions while prices remained steady.

The RBA recognizes that such practices contribute to public dissatisfaction, even if they are not the sole drivers of inflation. Hauser’s remarks indicate that while monetary policy targets overall price stability, individual corporate behaviors can still be addressed by market forces.

What This Means for Shoppers

For everyday Australians, Hauser’s advice is straightforward: remain vigilant, compare prices, and support businesses that maintain fair pricing. While central banks like the RBA work to stabilize inflation through interest rates and other tools, consumer choices can directly influence company behavior.

The deputy governor’s comments serve as a reminder that economic policies and corporate strategies interact with the actions of individual consumers. In effect, Australians have a small but meaningful role in shaping how companies respond to inflationary pressures.

Andrew Hauser’s call to “vote with your feet” highlights the dual approach to managing inflation: systemic policy interventions on one side, and conscious consumer choices on the other. While inflationary pressures continue across Australia, shoppers can influence how companies behave and hold them accountable for pricing strategies perceived as unfair or exploitative.