Canada may have hoped for a decrease in food prices as it entered the new year, but it seems that may not be the case.
According to the 2024 Canada鈥檚 Food Price Report, the cost of groceries is expected to rise by 2.5 to 4.5 per cent. The report also indicates that an average family of four is currently spending $15,595.4 per year, which is $693 less than last year鈥檚 amount of $16,288.4.
Canadian researchers predict that bakery, meat, and vegetable retail sectors will experience the most significant price increases, ranging from 5 to 7 per cent in Consumer Price Index (CPI), while the overall CPI increase is expected to be 5.9 per cent. The Consumer Price Index measures price changes for a representative basket of goods and services over time.
The report states that there were two million visits to food banks last year, a 32 per cent increase compared to March 2022 and a significant 78.5 per cent increase over March 2019. According to the Food Bank Canada鈥檚 2023 Hunger Count record, this was the highest number of visits ever recorded in Canada.
Researchers believe the price hike is due to various factors, including COVID-19-related supply chain disruptions, climate change, carbon tax, shelfation [when fewer fresh food products are on the shelves], and conflicts in Ukraine.
Last year, Minister Francois-Philippe Champagne promised Canadians that grocers would offer aggressive discounts, price freezes and price matching as an initial step to stabilize the food economy. Additionally, Champagne also announced that a grocery task force will be created within the Office of Consumer Affairs to monitor the grocery market on a monthly basis to investigate foul practices that will hurt consumers鈥� household economy.
The report is produced annually in collaboration with the University of British Columbia, Dalhousie University, the University of Guelph, and the University of Saskatchewan.
The issue of food affordability continues to be a top concern as prices continue to rise, along with housing, energy, and other expenses. How the province will respond to this situation remains to be seen.
