Canadians and newcomers may have to pay more for food in 2024.
Researchers from Dalhousie University, the University of Guelph, the University of Saskatchewan and the University of British Columbia say the average family of four in Canada will pay $16,297.20 for food in 2024, an increase of $701.79 from last year. It is estimated that bakery, meat and vegetables will see the most significant increases, ranging from 5% to 7%.
The Canada Food Price Report for 2024 was released on Dec. 7 and shows that political, environmental and economic instability in Canada and globally have had an impact on energy and commodity prices.
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Despite the expected increase, the overall outlook is better than the 2023 report. That report expected total food prices to rise by 5% to 7% and for 2024 expects total food prices to rise by 2.5% to 4.5%.
The report further says the average amount spent on food is expected to decline in Quebec, Prince Edward Island and Newfoundland and Labrador.
The report also found that in contrast to rising prices, people in Canada spend less on groceries on average than they did in 2022. It said this has caused some concern among researchers as it means Canadians are either eating less or buying lower quality food.
Competition Act
In response to rising prices, Finance Minister Chrystia Freeland introduced the Affordable Housing and Grocery Act earlier this year.
One of the main pillars of the Act is to change competition laws to encourage major grocery chains to reduce prices.
It gives the Competition Bureau greater powers to investigate allegations of unfairness or price fixing and to take enforcement action.
The Bureau will also be able to prevent corporate collaborations or mergers that discourage competition and limit consumer choice.
According to toronto starGalen Weston, the former head of Loblaws Companies Ltd., said high food prices are not due to a lack of competition or pricing at the company level. Weston said high prices at grocery stores are the result of higher prices charged by suppliers.
The food price report shows there is some truth to this. It says that the price increase is heavily influenced by climate change and the negative impacts on crops such as floods and forest fires. It also says that global events such as the current situation in Ukraine and the Middle East are contributing to the price increase.
These events could pose challenges for grocery stores, as demand will increase and suppliers will likely raise prices due to limited supply.
Still, Loblaws reported a 12% rise in profits in its last quarterly report, while “overall inflation risks in Canada continue to decline” after dominating the economic landscape, according to the Bank of Canada.
Saving on groceries as a newcomer to Canada
There are a few things newcomers can do to save money on groceries in Canada.
The main thing is to plan in advance, be organized, and find the stores with the lowest prices. When making a shopping list, it can be helpful to check flyers for local stores and be prepared to visit more than one location.
There are also websites that have coupons available that can be printed or downloaded for discounts on food items and other products.
Finally, a helpful strategy is to go grocery shopping later in the day, when employees sometimes offer discounts on food that hasn’t sold. Also, buy store-brand pantry items rather than more expensive brands. And remember that local, independent vegetable vendors are often more cost-efficient for fresh produce than big stores.
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