Photography, Brooke Cagle, Unsplash.com
In the past few years, we’ve all seen our expenses skyrocket, especially when it comes to grocery bills.
The 14th edition of Canada’s Food Price Report, produced by Dalhousie University, the University of Guelph, the University of British Columbia and the University of Saskatchewan gives an in-depth look into what we can expect in terms of food prices in 2024 in Canada.
The report considers many market instruments and macroeconomic factors in its forecasting, including geopolitics, climate change, inflation and the “shelflation” phenomenon, which suggests that Canadians are concerned about major grocery chains profiteering off rising prices.
As inflation continues to grow, food prices unfortunately follow suit. The report predicts that food prices will increase by 2.5% to 4.5% in 2024.
The report identifies several factors that contribute to the ongoing rise in food prices: inflation, geopolitical conflicts such as the war in Ukraine, the disastrous effects of climate change on crop yields, and the ongoing consequences of COVID-19’s disruption of supply chains.
Photography, NRD, Unsplash.com
Despite rising prices, Canadians seem to be spending less on food and beverage retail, as many struggle to make ends meet due to inflation and household debt.
Newfoundland and Labrador, Prince Edward Island and Quebec can expect a below-average increase in food prices, while the rest of Canada will see an above-average increase.
What will be affected?
In terms of specific categories, the report forecasts that bakery items, meat and vegetables are expected to change the most, with a 5-7% increase in prices.
Restaurants and seafood will see a 3-5% increase, while dairy and fruit will likely increase by 1-3%.
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