In a recent interview with CNBC's "Money Movers," National Economic Council Director Lael Brainard emphasized the role of "shrinkflation" in driving higher consumer prices, aligning with President Joe Biden's latest campaign against corporate price gouging. The remarks come as the Biden administration faces criticism for failing to alleviate the burden of rising costs on consumers, potentially impacting the President's 2024 reelection bid.

Brainard specifically pointed out that while the prices of certain staples like eggs and milk have decreased, consumer brands have chosen to downsize product packaging instead of lowering prices. This tactic, known as shrinkflation, has caught the attention of President Biden, who has been urging corporations to pass on any savings to consumers.

The comments made by Brainard come on the heels of the release of the consumer price index, which showed that inflation in January exceeded expectations, with a 0.3% increase. Additionally, food prices witnessed a slight uptick of 0.4% during the same period. Notably, major consumer brands such as Coca-Cola, PepsiCo, and Procter & Gamble have raised prices over the past year in order to maintain profitability.

Shrinkflation has become a prominent focus of Biden's pressure campaign against corporations, first introduced on Super Bowl Sunday. While the White House and Biden's 2024 reelection campaign continue to highlight the recovery of the economy, recent polls indicate that consumers have yet to experience the promised relief on their wallets, leading them to attribute blame to the Biden administration.

In response to the concerns voiced by consumers, President Biden has shifted the blame onto corporate pricing tactics, calling them the driving force behind the persistent high prices. Brainard reaffirmed this stance, mentioning that the President will consistently emphasize the decrease in input costs and the healing of supply chains. Biden will continue to urge corporations to pass the savings onto American consumers.

As the battle over rising consumer prices continues, it remains to be seen whether the Biden administration's efforts to combat shrinkflation and pressure corporations to lower prices will yield tangible results for American households. The outcome of this ongoing challenge may impact President Biden's prospects for reelection in 2024.