Economy

Canadian Food Prices to Increase more in 2023

After all GOV. and financial institution predictions that Canada’s inflation, housing market and unemployment rates will stay steady, new reports say somewhat different story!

Canadians won’t escape food inflation any time soon:

Food prices in Canada have risen strongly in 2022, leaving the most vulnerable Canadian’s struggling. But, that’s not the end of the nightmare for many. Food prices in Canada will continue to climb in the new year, with grocery costs forecast to rise up to 7% in 2023, new research predicts. For a family of four, the total annual grocery bill is expected to be $16,288 — $1,065 more than it was this year, the 13th edition of Canada’s Food Price Report released Monday said.

The report predicts price hikes will be seen across all food groups, but expects vegetables to see the biggest cost increase of six to eight per cent. The cost of eating out at restaurants is set to go up four to six per cent, along with the price of seafood.

Fruit prices are expected to see the smallest bump of up to five per cent, while every other category — meat, bakery products and dairy — will go up between five and seven per cent. Those price hikes will come as food inflation remains above 10 per cent, according to the most recent Statistics Canada figures released last month. October saw food prices rise by 10.1 per cent, down slightly from the 10.3 per cent hike in September.

While food prices rise on monthly basis, financial institutions increase rates every three months since beginning of 2022 as well, setting the road for a potential grim outcome for many. Most Canadians developed credit card lifestyle over the years, which means, almost all products and services are paid with credit cards and not paid off in time, hiking already high prices and services another10-30% each month on remaining card balance. If we take in account rising rent and energy cost, 2023 will be challenging for many Canadian families.