‘Egg-flation’ down in December as most grocery costs fall, but not all

Prices for meals objects bought from shops in Canada decreased barely month to month in December, Statistics Canada says, however shoppers proceed to pay extra for recent greens, dairy merchandise, and meats.

In its newest report Tuesday, Statistics Canada pegged grocery inflation in December 2022 at 11.0 per cent, a lower from 11.4 per cent the month earlier than. The total Consumer Index Price (CPI) was 6.3 per cent year-over-year in December, a lower from 6.8 per cent in November.

StatCan says the CPI slowed resulting from costs on the pumps.

“The monthly decline in December is the largest since April 2020, mostly driven by gasoline prices, which also posted their largest monthly decline since April 2020,” the Statistics Canada report reads.

Consumers paid 13.1 per cent much less at fuel stations in December in comparison with November. StatCan says this can be a reflection of decrease costs for crude oil amid a “slowing global economy.”

Despite a small month-to-month lower in inflation, particular meals objects have stayed pricey or risen in value.

Eggs specifically are 16.5 per cent dearer than they had been in December 2021, based on the most recent CPI report.

“For Canadian eggs at the store, the retail price isn’t set by egg farmers,” says Jodey Nurse, a school lecturer learning historic patterns of agricultural advertising and marketing programs at McGill University.

“That’s a business decision made by those companies further up on the supply chain… I think it’s interesting that supply-managed commodities really have seen an element of stability,” Nurse instructed CTV’s Your Morning on Wednesday.

Nurse says egg costs are extra secure in Canada – lowering -2.2 per cent between Nov. 2022 and Dec. 2022 , based on StatCan – than within the U.Okay. and U.S.

Food prices within the U.Okay. continued to extend for a seventeenth consecutive month, reported The Associated Press. Inflation on meals rose from 16.5 per cent in November to 16.9 p.c in December.

Avian influenza outbreaks within the U.S. have impacted the worth of eggs there and in Canada, Nurse stated. As of Jan. 11 there have been 47 states with poultry outbreaks affecting 57.8 million birds.

“Egg prices have been incredibly high in the United States, and in very short supply as well,” Nurse defined. “Canada in comparison has not experienced these issues to the same extent as the U.S. and this is largely because of our supply management system.”

As of Jan. 11, the Canadian Food Inspection Agency has reported a complete of 118 contaminated premises (IPs) affecting 6.92 million birds. British Columbia has the biggest variety of IPs with 3.4 million birds impacted throughout the province.

“Farms in Canada are relatively small in size, especially in comparison to egg farms in the U.S.,” Nurse stated. “Farmers work together to maintain the domestic supply of eggs so, for example, if there is an avian influenza outbreak that affects one region of the country, production can be increased in other provinces to keep the supply balanced and to make up for potential gaps.”

Nurse additionally stated the gap between egg farmers throughout Canada helps decrease the unfold of illness amongst birds. She believes eggs are nonetheless thought-about an reasonably priced protein.

“We’ve seen the impact world events have had on supplies (like) Russia’s war in Ukraine, to issues that persist because of COVID-19,” Nurse stated. “Of course, inflation has impacted most items that Canadians buy, including many food items…I believe the egg industry in Canada has a very strong incentive to keep prices as affordable as possible for consumers.”

FOOD PRICES IMPACTED BY INFLATION

While most meals inflation decreased from November 2022 to December 2022, year-over-year December costs nonetheless stay excessive.

The costs for recent greens rose 13.6 per cent in December 2022, from a 11.2 per cent improve in November 2022.

Tomato costs elevated 13.6 per cent between Nov. 2022 and Dec. 2022, leading to a 21.9 per cent year-over-year improve. Lettuce costs elevated 2.8 per cent within the final two months, with December year-over-year inflation at 32.8 per cent.

Overall recent fruit costs noticed a 4.2 per cent improve from Nov. to Dec. 2022. Apples alone had a 2.5 per cent improve from Nov. to Dec. 2022 contributing to an total year-over-year improve of 12.1 per cent in December.

Pasta product costs between Nov. and Dec. elevated 4.8 per cent, leading to a December year-over-year improve of 21.1 per cent.