The researchers behind Canada’s Food Price Report 2024 say some relief is coming for grocery shoppers. This report is made by teams from Dalhousie University, the University of Guelph, the University of Saskatchewan, and the University of British Columbia. They use old data and smart tools to predict food prices in Canada.
Food Price Forecast
Food prices are expected to go up, but not as much as last year. Prices will likely rise by 2.5% to 4.5% in 2024, which is lower than the 5% to 7% increase in 2023. A family of four will spend about $16,297.20 on food in 2024, which is an extra $701.79 compared to last year. This is better than the $1,065 increase in 2023. Andrea Rankin from Dalhousie University says the report brings “good news” and that food prices might be more stable next year.
Relief for Shoppers
Stuart Smyth from the University of Saskatchewan says the 2.5-4.5% increase in 2024 will be a break from the bigger increases of past years. He is hopeful that “sticker shock” will become less common in grocery stores.
Food Inflation Trends
The Food Price Report 2024 shows that food inflation will rise by 2.5 to 4.5 percent next year. This is lower than the huge price hikes after the pandemic. For example, food prices went up by 11.4% in September 2022 but dropped to 5.4% in October 2023.
Price Increases by Food Type
Here’s what to expect for food price increases in 2024:
Bakery: 5-7%
Dairy: 1-3%
Fruit: 1-3%
Meat: 5-7%
Seafood: 3-5%
Vegetables: 5-7%
Restaurants: 3-5%
Family Food Costs
An average family of four will spend about $700 more on groceries in 2024 than this year. In 2023, food prices went up by 5.9% overall, which was within the predicted range of 5-7%.
Canadians Spending Less
Canadians spent less on food in August 2023 compared to a year earlier. This was because people are buying less food or choosing cheaper options.
Grocery Executives’ View
CEOs from grocery chains like Loblaw, Metro, and Empire spoke about food prices. They denied making big profits from high food prices and said their profit margins are low. Michael Medline from Empire and Galen Weston Jr. from Loblaw explained that even without extra profits, grocery bills would still be high due to costs throughout the supply chain. They also talked about their efforts to push back against unnecessary cost increases from suppliers.
Relief for Shoppers
