Prices at grocery stores continue to climb, making it even more difficult for consumers to buy their weekly groceries. While 2022 was a challenging year, the beginning of 2023 looks to be similar.
Canada’s Food Prices Report 2023 predicts 5-7 per cent food growth, mainly in vegetables, dairy and meat.
Last year, the rate of inflation reached 11 percent, a model that Dr. Charlebois says is not sustainable. Food prices haven’t been this high in Canada in more than 40 years, the report says, but it’s not just a nationwide issue. This is a global issue, and Canada has one of the lowest inflation rates worldwide.
Food prices set to rise by 5-7% in 2023 after record inflation year: Report
read more
Dr. Sylvain Charlebois, director of the Agri-Food Analytics Lab in Dalhousie, says that unfortunately even the average family of four will feel the increased prices.
“It would probably cost more than $16,000 for that family to feed themselves,” Charlebois said. “Which is an extra $1,056 compared to last year to buy the same food at the same time.”
While the pandemic may be to blame for the inefficiency of weekly groceries, there is a growing list of factors including climate change, supply chain disruptions, carbon taxes and rising transportation costs.
In addition, international events such as the war in Ukraine have an impact on our economy.
In 2022, the report says there were about 1.5 million visits to food banks, and March 2022 saw the highest use in Canadian history. With the number of users on a steady incline, local food banks are starting to worry about 2023.
Last year, local food banks Feed the Need in Durham RegionIt reportedly saw an increase of around 60 per cent – and is directly attributed to the cost of food.
“It’s the reason existing people come to the food bank, and the number one reason why we’re seeing new customers,” said Ben Earl, chief executive officer of Feed the Need in Durham.
Moreover, along with the increased demand, the demographic of the customers is also changing.
“Employed individuals, maybe those living in two-income households but that has changed,” Earle said. “One person said the cost of their mortgage had increased, and that was their stumbling block.”
Traditionally, food banks cater to people with a single income or who are unemployed. But this changing story is presenting a picture of how badly inflation is affecting the shopkeepers.
“For the first time, we are seeing more people working and using the food bank. This is worrying because it puts a strain on services, and there is a demand for more food, resources and money,” Earle said.
While the first half of the year is reportedly going to be challenging, the report predicts that the second half of the year could be a bit smoother. Canadians can look forward to better prices at their grocery store as well as a more predictable food industry.
© 2023 Global News, a division of Corus Entertainment Inc.