The Daily Money: Lawmakers target shrinkflation

Good morning! It’s Daniel de Visé with your Daily Money.

Two members of Congress are calling out Coca-Cola, PepsiCo and General Mills over shrinkflation – reducing the size of their products, but not the prices – and allegedly price-gouging consumers while avoiding corporate taxes.

In letters dated Oct. 6 and sent to the CEOs of those three companies, Sen. Elizabeth Warren, D-Mass., and Rep. Madeleine Dean, D-Pa., wrote they were concerned about the "pattern of profiteering off consumers, both through 'shrinkflation,' and dodging taxes on those price-gouging profits."

The congresswomen cited several examples, including PepsiCo's replacement of 32-ounce Gatorade bottles with 28-ounce bottles, sporting a different shape but offered at essentially the same price.

Health insurance rates are rising

Escalating grocery bills and car prices have cooled, but price relief for Americans does not extend to health care, Ken Alltucker reports.

The average cost for a family health insurance plan offered through an employer increased 7% this year to $25,572, according to the annual employer health benefits survey released Wednesday by KFF, a nonprofit health policy organization. Insurance costs for individuals bumped up 6% to $8,951 this year, according to the survey.

Why are rates rising?

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For the first time ever, Gen X workers saw their 401(k) balances top those of baby boomers, Fidelity data showed.

Balances for Gen X workers who have been saving for 15 years averaged $543,400, or $200 more than the average for boomers, according to the financial service firm’s analysis of its more than 22 million accounts in the first three months of the year. The report was released this summer. Gen X, born between 1965 and 1980, is the next generation to retire behind the boomers, who were born between 1946 and 1964 and are retiring now.

Gen X is often referred to as the forgotten generation, sandwiched between the large and culturally powerful boomer and millennial cohorts. It’s also the first generation to start working as 401(k)s replaced pension plans. Surveys have shown many of them don’t have nearly enough for retirement, but Fidelity’s report shows promise.

About The Daily Money

Each weekday, The Daily Money delivers the best consumer and financial news from USA TODAY, breaking down complex events, providing the TLDR version, and explaining how everything from Fed rate changes to bankruptcies impacts you.

Daniel de Visé covers personal finance for USA Today.