Wednesday, March 22, 2023

Decline in inflation rate notwithstanding, grocery prices still high


Toronto, February 22: Despite the declining headline inflation rate, the food inflation rate in Canada has remained high, and experts say it may be a while before grocery prices head in the other direction.

Numbers from Statistics Canada’s latest inflation report, published Tuesday, showed that in January, food prices saw a year-over-year increase of 11.4 per cent, up from 11 per cent the previous month. Since last August, the food inflation rate has been above 10 per cent.

Climate-related events over the last few months, such as flooding in B.C and droughts in California, have had a significant impact limiting imports and production, experts have explained, in addition to the ongoing war in Ukraine.

There has been a significant increase in fuel surcharges and transportation and the increased input costs throughout the supply chain continues to be passed on to the retailer.

Another reason for this can be attributed to the spread of avian flu in North America, which led to culling of millions of chickens. Chicken prices rose nine per cent from December to January, faster than almost every other grocery item.




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