Canadians making fewer grocery store trips as food inflation continues to bite: report – National | 24CA News
Canadians are on common making fewer grocery retailer runs as meals inflation persists, however nonetheless spending roughly the identical quantity per journey, based on a report Thursday by RBC.
The financial institution’s shopper spending tracker confirmed the common variety of grocery transactions in February was up 8.4 per cent relative to pre-pandemic ranges, in contrast with a roughly 13 per cent bump relative to pre-pandemic ranges seen towards the tip of November 2022.
“It could very well be people are cognizant of rising prices, and instead of just going and picking up things here and there, they’re being more conscious and just making fewer trips to the store,” RBC economist Carrie Freestone mentioned.
“It’s largely a story of people continuing to have to pay more for groceries.”
Grocery costs grew by 11.4 per cent year-over-year in January, regardless of an general annual inflation price of 5.9 per cent for that month, based on the newest information launched by Statistics Canada.
Freestone mentioned it may take time for meals costs to fall, however it’s too quickly to foretell when that can occur.
“Grocery spending is very much non-discretionary. I think where we’re more likely to see the pullback, as the impact of higher rates filters through the economy, is discretionary spending,” she mentioned.
“When interest rates are really high, food prices are still a lot higher and real wages aren’t catching up with inflation. We’re going to be in a situation where people have lower disposable income and they have less money left over to spend on discretionary goods.”
The shopper spending report confirmed discretionary spending held regular via February. Restaurant spending remained sturdy regardless of a slight decline during the last three months.
The newest inflation information indicated meals bought from eating places rose 8.2 per cent in January in contrast with the identical month final 12 months — up half a share level from December.
Canadians additionally proceed to e-book journeys regardless of flight prices rising 28 per cent from pre-pandemic ranges, based on RBC. Spending development on worldwide journey continued to outpace home flights.
“This is a unique case, but we’re coming out of a pandemic where we have this immense pent up demand,” Freestone mentioned.
“People are willing to spend a little bit more at bars and restaurants, a little bit more travel, because they missed out on it for so long. It is somewhat unusual that we’ve seen it hold up for this long, but given the context, it’s not surprising to me.”
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