Food prices to increase beyond inflation in 2016: report
Josh Crabb, CTV Winnipeg
Published Thursday, December 10, 2015 2:55PM CST
Last Updated Thursday, December 10, 2015 7:10PM CST
Get ready to shell out more money at the checkout counter.
Grocery prices are set to rise beyond the rate of inflation in Canada in the New Year.
Researchers from the University of Guelph’s Food Institute expect prices to rise between two and four per cent.
The weak Canadian dollar, climate change and consumer trends are the main factors expected to affect food prices, say researchers.
Next year, the average family can expect to spend $345 more than they did in 2015 for the exact same food.
The report said meat prices rose four percent in 2015 and researchers expect a further increase of 4.5 per cent in 2016.
The report also included a survey which found 62 per cent of respondents stopped or reduced eating beef in the past year for financial reasons.
It’s not only meat, 80 per cent of fruits and vegetables eaten by Canadians are imported and researchers said that makes them more vulnerable to currency fluctuations.
Sylvain Charlebois, the lead author of the report from the University of Guelph’s Marketing and Consumer Studies department, said in 2015 the sudden currency drop caused the price of fruits, vegetables, and nuts to go up 10 per cent.
“Lettuce in October alone went up 22 per cent in a month,” said Charlebois.
Cauliflower prices are also rising.
St. Vital Market owner Bruce Lemieux said a head of cauliflower now costs around $7. Lemieux said last year the same head would’ve sold for around $3.
Eighty per cent of fruits and vegetables eaten by Canadians are imported and researchers said that makes them more vulnerable to currency fluctuations.