diff --git a/.changeset/moody-apricots-bake.md b/.changeset/moody-apricots-bake.md
new file mode 100644
index 00000000..8e65886c
--- /dev/null
+++ b/.changeset/moody-apricots-bake.md
@@ -0,0 +1,5 @@
+---
+"@primer/css": patch
+---
+
+Reduce size of `Label--inline`
diff --git a/src/labels/mixins.scss b/src/labels/mixins.scss
index 2e351848..2c300eff 100644
--- a/src/labels/mixins.scss
+++ b/src/labels/mixins.scss
@@ -27,6 +27,6 @@
 
 @mixin labels--inline {
   display: inline;
-  padding: 0.1667em 0.5em;
-  font-size: 0.9em;
+  padding: 0.12em 0.5em;
+  font-size: 85%;
 }