For the fourth consecutive year, the price of groceries in Canada will rise faster than the general rate of inflation, according to the Food Institute of the University of Guelph, in Ontario.
In the report published yesterday on the price of food, they predicted a rise in prices of up to 4.5% for meat, nuts and fruits, while eggs, bread and grain should rise by 2%.
“When general inflation is low and salaries don’t actually move up all that much […] you’re basically forcing consumers to make sacrifices,” says professor Sylvain Charlebois, one of the authors of the report. He thinks it might be a difficult year for some.
In its report, the Food Institute found that the price of food rose more than predicted in 2015, mostly because of the falling Canadian Dollar.
Our weak currency has especially had an impact on fruits and vegetables, with prices rising 9.1% and 10.1% respectively. The price of pasta also rose 10% over the course of the last year.
As for pork and beef, the imbalance between supply and demand is what keeps the prices high. When the Canadian dollar is low, it attracts buyers for our agricultural products, according to Charlebois, and Americans take more interest in Canadian meat. To keep pork and beef on our shelves, we’ll have to pay more.
|Predicted Price Increases in 2016|
|Fruits and Nuts||4,5%|
|Fish and Seafood||3%|
|Eggs and Dairy Products||2%|
|Bread and Grain||2%|
There’s no miracle solution, but there are always ways to save money if you plan your purchases.
How to do it: make a menu based on flyer specials.
Create a grocery list at home first (to avoid impulse buys and wasteful spending) and watch prices.
Today I spoke about the report with Julie Marcoux on LCN news as well as Denis Lévesque (only available in French) on his tribune.
For a little bit of extra help, I invite you to use our SOSPlus service. Week after week, we watch the deals from nearly 100 stores across Canada and find you the REAL bargains. With an investment of under $1/week, you’ll easily save $1000/year on groceries.