According to Canada’s Food Price Report for this year it has been anticipated that we would see food prices rise around Canada.
This report is published annually and predicts that we might see between 5% to 7% increase in food costs for Canadians.
The expected food price increases are coming at a time when Canada is seeing inflation that it has not seen in years.
The cost of living today is becoming an increasing topic of concern with politicians and those who are worried about the economic future for themselves, their families, and communities.
The rise in prices for food and other goods is already prompting some Canadians to change their habits and go looking for a deal when possible.
Starbucks Raising Prices
It looks like Starbucks is one company that is set to raise their prices on their menu as well, along with others who have already taken to doing this since the start of the pandemic in the face of historic supply chain woes.
Citing increasing costs for supplies and labor costs Starbucks has suggested that it will move to raise prices in 2022.
Those Starbucks price increases are expected to be taken as additional pricing actions that they meant to balance and try to offset those pressures that they are seeing from things like supply chain difficulties and inflation.
Inflation Squeezing Canadian Budgets
The growing prices for food in Canada could add hundreds of dollars onto the grocery bills for Canadian families and individuals. For Canadians on a low income or fixed income this means that they are especially going to struggle with that increase in cost of living for themselves.
Some categories are also expected to see high price increases than others. For baked goods for example, it could be anywhere between 5% to 7% food price increase, fruits between 3% to 5% price increase, and vegetables between 5% to 7% increase for the price of goods.
Large portion of Canadians have difficulty meeting food needs
One recent poll suggested that about 60% of Canadians might have difficulty meeting their food needs and there are many around the country who are food insecure.
There are hundreds of thousands of individuals in one province alone, like Ontario, who might need to access food banks to supplement their food or be able to access food.
During the pandemic we also saw that these resources were overwhelmed by the growing demand for help with feeding Canadian families.
Dairy and fresh produce items are those which are expected to see noticeable price increases, among other goods. Eventually, more of those items might become unaffordable to Canadians.
Around Canada those rising food costs due to inflation and more are expected to be especially difficult on the vulnerable. And not many Canadians have room to absorb those changes when they are already paying high costs for housing and more.
60% Worried About Inflation
One CIBC survey from last year showed that about 60% of Canadians were worried about inflation. The rising cost of food and other goods is on the minds of many around the country. We also saw that this became an important voting issue as well.
A large portion of Canadians today worry that their paychecks won’t be able to keep up with that inflation.
One study by Angus Reid Institute found that 4 in 5 Canadians say that the increase they’ve seen in cost of living has outpaced any income growth that their household might have seen.
Will We See An Increase In Rates?
While there are some who are suggesting the idea of, and waiting for, an increase in rates to try and offset those inflation worries and economic concerns, other Canadians say that this would have a major negative impact on their finances for their household.
Overall, this is an issue facing millions of Canadians who are concerned about the economic wellbeing of themselves, their families, and their communities, the country as a whole.
As inflation in Canada pushes prices higher this concern isn’t going to go away and isn’t expected to correct itself on its own.