Food prices set to rise another 5-7% in 2023 after record inflation year: report – National | 24CA News
After a 12 months that noticed meals costs climb by numbers not seen in many years as a consequence of file inflation, the price of groceries in Canada is predicted to proceed rising in 2023, a brand new report suggests.
The newest Canada Food Price Report launched Monday estimates meals costs will improve by one other 5 to seven per cent on common subsequent 12 months, including lots of of {dollars} to the common household’s annual bills.
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“Living is expensive, and we are not bringing good news,” Samantha Taylor, a senior teacher of accountancy at Dalhousie University and one of many researchers behind the report, acknowledged in an interview with Global News.
“The ease for Canadian consumers is not necessarily on the horizon.”
The report predicts worth hikes will likely be seen throughout all meals teams, however expects greens to see the most important price improve of six to eight per cent. The price of consuming out at eating places is ready to go up 4 to 6 per cent, together with the value of seafood.
Fruit costs are anticipated to see the smallest bump of as much as 5 per cent, whereas each different class — meat, bakery merchandise and dairy — will go up between 5 and 7 per cent.
Researchers say a typical household of 4 will likely be compelled to shell out a mean of $16,288 on meals over the course of 2023 — a rise of $1,065 from this 12 months. A two-adult family will spend $7,711, a bump of greater than $500 from 2022.
Those will increase will come as meals inflation stays above 10 per cent, in response to the latest Statistics Canada figures launched final month. October noticed meals costs rise by 10.1 per cent, down barely from the ten.3 per cent hike in September.
The charge of meals inflation exceeded researchers’ predictions within the final Food Price Report, which anticipated a 5 to seven per cent bump for 2022 — a quantity Taylor famous was seen as “relatively high” and “aggressive.”
That was earlier than COVID-19 pandemic-fuelled provide chain points drove inflation to a 40-year excessive, whereas Russia’s invasion of Ukraine additional squeezed world meals provides. A weaker Canadian greenback additionally damage grocers’ shopping for energy, Taylor added.
Those points are anticipated to stay by way of not less than a part of 2023, although the report additionally predicts a light-weight could quickly seem on the finish of the tunnel.
“We are hoping that we will see a peak and, hopefully, a tapering off of food inflation toward the end of 2023,” Taylor stated.
“A strengthening Canadian dollar will have more purchasing power so that when we’re buying items from outside Canada, our dollar will go further and therefore have (fewer) cost increases to consumers in the grocery store.”
The annual report is led by groups from Dalhousie University, the University of British Columbia, the University of Guelph and the University of Saskatchewan that use worth information from the previous 100 years to assist create prediction fashions. Global occasions and different potential impacts are additionally factored in to type an in depth outlook for the months to return.
With meals inflation already forcing Canadians to vary their shopping for habits and take into account various diets to save cash, Taylor says researchers are hoping the brand new report offers consumers the data they should plan accordingly for additional worth hikes.
“Information is power,” she stated.
She stated shopping for in bulk, freezing soon-to-expire greens and different perishables for later use, and group meals can additional assist individuals minimize down on ever-rising prices.
“Hopefully there is a way for people to take a look at the economic reality and work through ways that actually excite them to get together and share those meals and save their pocketbooks as well,” she added.
— with information from Anne Gaviola
© 2022 Global News, a division of Corus Entertainment Inc.
