Inflation is being targeted in Canada, so why is food (and other things) still so expensive?

There’s uncertainty about how much you’ll need to fork out your grocery cart, but for many families, there’s also a real struggle to cover the cost of the basics at the checkout counter. According to a new study by the Angus Reid Institute, 51% of Canadians say it’s a challenge to keep up with household food needs. And there is no price discrimination, as that goes to low-income households and Canadian families with incomes above $200,000.

“While inflation may be slowing, the cumulative effects of past inflation mean that many commodities remain more expensive,” said Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University in Halifax, NS. That’s why people of all ages, and families. of all sizes, from coast to coast are feeling the pinch, including Anna Lee Boschetto, a mother of two in Caledon, Ont. “I consider myself very lucky that despite the high food prices, we never go hungry,” he said. “But it did not disappoint me that there are a lot of families in my area, across the GTA and beyond that are not as fortunate. It’s scary because there doesn’t seem to be a concrete solution to this problem.”

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The ins and outs of inflation

Canada’s inflation rate has seen a slowdown this fall—now at 2.0% in October. So, why do we all still feel stressed at the coffee shop, the market, the grocery store and even when ordering? High inflation means higher labor costs for farmers and producers, supply chain disruptions and changes in corporate profits, all of which lead to higher food prices.

And, while food price growth is finally beginning to moderate, up to 2.7% year-on-year in October (from 2.4% in September), according to the latest Consumer Price Index report, that still leaves food inflation. in addition to inflation in the title.

Why are your grocery costs still so high?

The average family of four is expected to spend $16,297.20 on food this year—that’s $701.79 more than in 2023, according to the latest edition of the Canada Food Price Report, published by Dalhousie University, University of Guelph, University of Saskatchewan. and the University of British Columbia.

And that’s up from a whopping $1,065 increase last year. “Families feel the pressure,” said Charlebois. So, no, you don’t think inflation is over. We are still dealing with it.

When will food prices drop in Canada?

When and how much food prices will fall is a difficult question—one with no easy answer. This is partly due to the fact that it is not just about inflation.

“Global supply issues, ongoing global unrest and unpredictable weather have all had an impact on food prices,” said Mike von Massow, a food economist at the University of Guelph.