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Grocery prices in Canada continue meteoric ascent, rising at fastest pace since 1981

As overall inflation moderated in August, cost of food rose 10.8 per cent compared to a year ago
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A woman shops for produce at the Granville Island Market in Vancouver, on Wednesday, July 20, 2022. Food inflation remains stubbornly high in Canada as grocery prices climbed at the fastest clip in more than four decades last month. THE CANADIAN PRESS/Darryl Dyck

Shea McInnis used to love cooking.

But higher prices have reduced the PhD student to basic meal planning on a shoestring budget.

含羞草研究社淣ow it含羞草研究社檚 just about what nutrition I can produce with the dollars I have,含羞草研究社 said McInnes, who attends Saint Mary含羞草研究社檚 University in Halifax. 含羞草研究社淚 make a lot of decisions based on whether there含羞草研究社檚 a sale. The enjoyment and delight are gone.含羞草研究社

Food inflation remains stubbornly high in Canada as grocery prices climbed at the fastest pace in more than four decades last month.

While overall inflation moderated in August, the cost of food purchased from stores was up a staggering 10.8 per cent compared with a year ago.

That含羞草研究社檚 the fastest clip recorded by Statistics Canada since 1981.

Higher prices swept nearly every aisle of the grocery store. Even items once considered cheaper substitutes for pricier products weren含羞草研究社檛 immune to inflation.

For example, frozen and dried vegetables 含羞草研究社 usually considered a budget-friendly option 含羞草研究社 jumped 14.1 per cent last month compared with a year ago while fresh vegetables rose a more modest 9.3 per cent.

A similar trend appeared to unfold in the meat department.

含羞草研究社淎 few months ago when beef and pork prices were increasing significantly you could substitute for chicken,含羞草研究社 said James Orlando, director at TD Economics.

含羞草研究社淣ow the opposite is happening where beef and pork price inflation is decelerating and chicken prices are increasing.含羞草研究社

Several basic food staples also posted significantly higher prices.

Flour prices were up 23.5 per cent in August compared with the same month last year, pasta prices were up 20.7 per cent, bread 17.6 per cent, eggs 10.9 per cent, fresh fruit 13.2 per cent and fats and oils 27.7 per cent.

Even the simple potato pulled off double digit price gains.

Sustained higher prices are prompting Canadians to adopt new shopping habits to save money, a new survey released Tuesday said.

The survey found Canadian consumers are shopping more at discount stores, buying cheaper store brands, using loyalty programs and scouring weekly flyers for deals.

含羞草研究社淔ood inflation is lingering and is really starting to shape where and how people buy food,含羞草研究社 said Sylvain Charlebois, professor of food distribution and policy at Dalhousie University and director of the Agri-Food Analytics Lab, which conducted the survey along with Caddle, an online data platform.

The survey also found nearly a quarter of Canadians have cut back on the amount of food they purchased within the last year because of high grocery prices.

含羞草研究社淪ome people are actually buying less food,含羞草研究社 Charlebois said. 含羞草研究社淭here are dietary compromises being made by many Canadians.含羞草研究社

In an effort to save money, McInnis said he含羞草研究社檚 cut back on both treats and healthy foods.

含羞草研究社淚 used to really enjoy going to the bakery section and buying some cookies or a cake for a treat,含羞草研究社 he said. 含羞草研究社淏ut now that I含羞草研究社檓 trying to get as much mileage as I can out of my money I含羞草研究社檝e cut that out.含羞草研究社

He含羞草研究社檚 also stopped eating as much salad. The rising cost of vegetables and the risk of spoilage with fresh foods makes it含羞草研究社檚 not even worth it, he said.

含羞草研究社淚含羞草研究社檝e definitely made sacrifices at the grocery store to try to save money,含羞草研究社 McInnes said.

Some relief from soaring food prices could be in store as easing input costs reduce pressure on food prices.

含羞草研究社淲ith transportation costs and agricultural commodity prices now off their peaks, the trend in food price inflation should start to soften towards the end of this year and into 2023,含羞草研究社 Andrew Grantham, senior economist at CIBC Capital Markets, said in a client note.

Michael Medline, president and CEO of Sobeys Inc., said last week grocery store inflation may have peaked in Canada as price increases from food manufacturers stabilize.

The number and rate of cost increases being passed along to the grocery chain from food suppliers began decreasing in recent weeks, he said during an earnings call.





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