Canadians & newcomers are expected to pay more in the coming year. As a result, food prices will rise in 2024. Researchers from Dalhousie University, the University of Guelph, the University of Saskatchewan, & the University of British Columbia assert that the average family of four in Canada will pay $16,297.20 for food in the coming years. Well, this is an increase of around $701.79 from 2023. In addition, it forecasts that the most significant increases range from 5% to 7% in meat, bakery, & vegetables.
The Canada Food Price Report for the next year was released on December 7, 2023. The report demonstrates that political, environmental, & economic instability in Canada & worldwide has had an impact on commodity & energy prices.
Moreover, despite the fact that food prices will rise in 2024, the overall outlook is better than it was in the 2023 report. That report expected the overall price of food to rise from 5% to 7%. Also, the expectation for 2024 is that overall food prices will increase from 2.5% to 4.5%. The report further notes that the average amount spent on food will likely decrease in PEI, Quebec, & Newfoundland & Labrador.
Furthermore, the report also found that contrary to the increasing prices, people in Canada spend less on groceries on average than they did throughout 2022. It also notes that this has caused some concern among researchers because it implies that people residing in Canada are either eating less or buying lower-quality food.
Competition Act
As food prices will rise in 2024, Finance Minister Chrystia Freeland introduced the Affordable Housing & Groceries Act earlier this year. One of the main pillars of the act is to change the competition laws to incentivize major grocery chains to lower prices.
It offers the Competition Bureau more power to investigate allegations of unfairness or price fixing & take enforcement action. The Bureau will also be able to block company collaborations/ mergers that discourage competition & limit consumer choice.
According to the Toronto Star, the increase in food prices is not because of the lack of competition or price fixing at a company level. Moreover, the high prices in grocery stores are the result of inflated prices from suppliers.
The Food Prices Report shows that there is little truth in this. It asserts that the price increase is heavily influenced by climate change & the negative effects on harvests, like flooding & wildfires. The report also states that global events, such as the present situation in Ukraine & the Middle East, are contributing to the increase.
These events can pose challenges for grocery stores as demand increases & suppliers are more likely to raise prices because of limited supply.
Still, the report demonstrates a 12% increase in profits in the last quarterly report. At the same time, according to the Bank of Canada, the overall inflationary risks have continued to recede in Canada after dominating the economic landscape.
Saving On Groceries As A Newcomer In Canada
As food prices will rise in 2024, there are certain things newcomers can do to save money on groceries in Canada. The primary thing is to plan ahead, be organized, & find the stores with the lowest prices. When making a shopping list, it can help check the flyers for local stores & be prepared to go to more than one location.
Moreover, there are also websites that have coupons that can be printed/ downloaded for a discount on food & other products.
Lastly, a helpful strategy is going grocery shopping later in the day when staff sometimes mark down food that hasn’t been sold. In addition, stick to store-brand pantry items instead of more expensive brands. And remember that local, independent greengrocers are often more cost-efficient for fresh produce than larger stores.