Canadians continue to pay more at the grocery store, with Statistics Canada reporting that grocery prices rose in August at their highest rate since 1981.
A report released on Tuesday found that food costs rose 10.8 percent year-on-year.
“Food supplies continued to be impacted by multiple factors, including extreme weather, higher input costs, Russia’s invasion of Ukraine and supply chain disruptions,” StatsCan said in the report.
Condiments, condiments and vinegar gained the most in August, up 17.2 percent, followed by baked goods (15.4 percent) and soft drinks (14.1 percent).
Here are the other food-related price changes for August:
- Fresh fruit rose 13.2 percent
- Sugar and confectionery rose 11.3 percent
- Fish, seafood and other marine products increased by 8.7 percent
- Dairy products rose 7.0 percent
- Meat increased by 6.5 percent
CREATE A FOOD SHOPPING STRATEGY
Barry Choi, personal finance expert and author of MoneyWeHave.com, said families should consider changing some of their grocery habits as food prices continue to rise.
“By switching to a cheap supermarket, you can save a lot. Quite often, these discount stores carry the same products as brand name supermarkets but are cheaper,” Choi said via email on Tuesday.
He added that Canadians should consider checking weekly flyers for deals or shopping at stores that offer loyalty programs to save money on grocery bills.
“If food prices continue to rise, Canadians may be forced to cut their budgets in other areas if they haven’t already done so,” Choi said.
“Groceries are essential, so consider cutting back on things like subscriptions, eating out and even savings.”
For those who have the means, Choi said they should consider donating to a local food bank, as many families rely on it to stock their fridge.
THE DARK SIDE OF FOOD INFLATION
Higher grocery prices are causing many Canadians to reduce the size of their grocery purchases.
A report and survey released Tuesday by Dalhousie University’s Agri-Food Analytics Lab found nearly a quarter of Canadian residents (24 percent) are not buying as much food amid higher inflation.
Some people skip meals (7.1 percent) or pay their grocery bills with credit cards (6.6 percent) without knowing when to pay them.
“Our food inflation rate has been higher than the overall inflation rate for a number of months and that’s why a lot of people are noticing higher prices in the grocery store,” Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, said in a job interview on Tuesday.
“So now we’re seeing Canadians commit to a different strategy just because they know they don’t have much of a choice.”
