Food inflation prices reach all time high in Canada

Canadians are paying higher prices for basic groceries as the consumer price index is the highest it’s been in 39 years according to Statistics Canada.

Dr. Sylvain Charlebois, senior director, Agri-Food Analytics Lab at Dalhousie University, says food inflation is at 9.7 per cent which is a challenge due to supply chain issues, and the war in Ukraine affecting food supply.

“All sections of the grocery store are impacted right now, and we’re in this for a while. We are expecting food prices to continue to rise until probably the middle of Q3 — which is September-ish. Unfortunately, we’re not out of the woods yet,” said Charlebois.

He says the average rate of food inflation in Alberta is 8.7 per cent which is lower than the national average.

“Provinces that are impacted by the food inflation are the Atlantic provinces mostly, the north as well, North West Territories, and Ontario as well,” said Charlebois.

He says dairy, produce, meat products, and bakery goods prices have been going up slowly since the beginning of the year.

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“Albertans aren’t necessarily spared, even though there’s lots of cattle, lots of meat around them, they’re impacted as much as anyone else,” said Charlebois.

Charlebois says modelling data from the university was indicating the rise in food prices and they are anticipating a tough year ahead.

He says the federal government should reduce the tax burden as the US, Germany, and other countries did around the world.

“I think we have to actually wonder who’s helping the consumer at the end of the day, and right now no-one is helping the consumer, the tax payer with inflation right now, it’s all about spending,” Charlebois said.

Charlebois is expecting dairy prices to rise even more in the fall. He says if prices are too high, many farms might disappear.

He says when prices go up, people will make compromises on nutrition.

“I think there’s a role to be played by Health Canada there, because we’ve seen Health Canada going out, basically informing the public as much as possible about healthy lifestyle, and that needs to continue,” said Charlebois.