Food prices will rise five to seven percent in 2022, adding about $1,000 a year to the grocery bill of the average family of four, according to estimates from the latest edition of Canada’s Food Price Report, released Thursday.
Research shows that restaurant food, dairy, vegetable and bakery prices will provide the biggest hit to Canadians’ bottom lines, rising five to eight percent.
The overall growth, estimated to be between five and seven per cent, is the highest ever predicted by the report, which has been forecasting food inflation for the past 12 years.
“It will be a difficult year for middle-class people and apparently even for families with less means,” says Sylvain Charlebois, lead author of Dalhousie University and director of Dalhousie University’s Agri-Food Analysis Laboratory.
A family of four will spend up to $14,767 per year on food, an increase of $966 compared to 2021. The estimate is based solely on the expected cost of groceries and does not include restaurant meals.
The report said that families relying on online grocery platforms and delivery services can expect to pay between Rs two and eight.
Further increases in food prices are predicted as Canadians already grapple with rapidly rising grocery bills. Canada’s official rate of food inflation, as measured by Statistics Canada, reached 3.8 percent in October.
But higher energy prices, labor shortages, supply chain disruptions and the impact of adverse weather events associated with climate change will result in an even sharper rise in prices for many categories in the coming year, according to the report.
The researchers note that Canada’s carbon tax, which will increase from $40 per ton in 2021 to $170 per ton by 2030, is another factor that will drive food transportation costs higher.
However, “it is not clear what effect the carbon tax will have on food prices and more data is needed,” he said.
Canadians can expect menu prices to rise by between six and eight percent next year, the report said, as restaurants grapple with rising costs and crippling rents.
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When it comes to dairy products, which are expected to climb between six and eight percent, the report’s estimates reflect a recent announcement by the Canadian Dairy Commission, which saw prices rise after production costs exceed agricultural revenues. increase was recommended.
The commission announced in October that it would increase the price paid to farmers for milk by 8.4 percent next year, a controversial decision that a Granthshala News investigation showed was based on an unusual method for setting prices. .
According to the report, the prices of vegetables are likely to increase by five to seven per cent and so will the price of bakery products.
“While the bakery has actually been a no-story since the end of the pricing scandal in 2017, we are now expecting the price to go up because the input costs are actually very high now,” Charlebois says.
Wheat prices recently hit a nine-year high amid slackening supplies among the world’s top exporters.
However, with little hope, the report predicts that meat prices will ease inflation, with prices increasing by a maximum of two percent next year.
After two years of growth, “we’re expecting a little break at the meat counter for 2022,” says Charlebois.
Sometimes feeling the prick of large grocery bills, consumers are looking for new strategies to keep costs under control.
For example, a recent survey by Dalhousie University found that half of the respondents surveyed had changed their meat buying habits due to the rise in prices.
and canadian couponing app ribi said it has seen a 23 percent increase in passenger views between October and November. In the last month alone, the company says it has seen more than 100,000 downloads.
The company has seen a significant increase in both user and retailer adoption as food inflation accelerates, with more and more stores making their coupons available through the app, says Mark Smith, director of retail partnerships at Ribi.
But rising food costs will make food insecurity worse, warns the Food Price Report, adding that “food programs may face rising demand with higher food costs.”