M. Shahbandeh
Research expert covering agriculture & FMCG
Food price inflation in Canada - statistics & facts
The cost of food in Canada has increased with a fast pace every month since 2020. The inflation rate for food in Canada reached 10.4 percent in January 2023, its highest level in nearly forty years. Countries all over the world have experienced a disruption in many aspects of the economy due to both the COVID-19 pandemic and the Russia-Ukraine war. In 2022, food price inflation went up drastically in many countries. While in 2023, food prices were still high, the inflation rate slowed down in comparison to the previous year.
Price inflation across many food categories
Across Canada, prices for basic food items have increased. The price of fresh products like vegetables increased up to 7.6 percent and had the highest growth after baked goods compared to other food products in 2023. As of December 2023, one kilogram of ground beef cost an average over 12 Canadian dollars, which was four dollars higher than the price in December 2018. Food prices vary across the Canadian provinces, with the consumer price index (CPI) for food almost 40 points higher in some provinces. However, every province has experienced an increase in the CPI of food purchased from grocery stores.How do Canadians figtht the rising food prices
Canadians have started to adjust their habits because of the price increases, such as eating out less frequently or cutting back on more expensive products like meat, alcohol, or fresh fruits and vegetables. Nevertheless, the annual expenditure per household in Canada is still expected to increase in 2024, with a six-person household expected to spend over 21,700 dollars per year on food. Many Canadian consumers are also shifting to discounted items or items with a promotion when grocery shopping. Over half of the respondents also reported shopping more at low-cost retailers to fight inflation. As of April 2024, some 72 percent of Canadians stated that they expected grocery prices to increase in the future. This indicates that this shopping behavior change in Canadian consumers is likely to continue for the foreseeable future.
