Inflation is slowing, but consumers at the grocery store aren’t feeling it. All it takes is a quick visit to the aisles to see that prices are rising much more than the statistics indicate.
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“The economy is going one way while grocery prices are going the other. This is what is worrying, ”summarizes Sylvain Charlebois, specialist in food issues.
It is also the first time since the start of 2020 that Canada’s food inflation rate has exceeded that of the United States (increase of 10.1% south of the border in January compared to 10.4% in the north).
“Within the G7, Canada is no longer top of the class in terms of food inflation”, since in addition to the United States, Japan is also doing better.
$3.49 lettuce, $4.99 celery, $5.99/lb green beans, $6.49 six-pack bagels, $21.99 3-liter jug of sunflower oil. examples abound of prices that could not even have been imagined barely 24 months ago.
For some everyday products, increases range from 20% to 50% in 12 months (see table above).
different directions
Inflation and the price of food continue to take different paths.
The rise in the consumer price index (CPI) was 6.2% in January in Quebec, according to data from Statistics Canada, compared to 6.3% in December.
Food prices jumped 11.4% at the grocery store, compared to 10.5% in December.
Fourteenth month in a row
It has now been 14 consecutive months that the price of food has been rising faster than anything else.
The last time the food inflation rate was lower than the inflation rate was in November 2021.
January was the month for bakery products (+15.5%), dairy products (+12.4%) and fresh vegetables (+14.7%), three food categories where the increase prices accelerated.
And it’s gonna get even worse
And it will be worse in February, at least for dairy products, because the increase that came into effect on February 1 is not yet taken into account in the consumer price index.
“Tie your panties! illustrates Mr. Charlebois.
Cost of mortgages
Interest rate hikes are the other major factor fueling inflation.
The cost of mortgages increased by no less than 21.2% in Canada between January 2022 and January 2023 (18% in December).
Encouraging signs
This is the third month in a row that we have witnessed a slowdown in the rise in prices.
Inflation went from 7% in August, to 6.9% in September and October, to 6.8% in November, to 6.3% in December and now to 5.9% in January.