A recent report from Dalhousie University, the University of Guelph, the University of Saskatchewan, and the University of British Columbia forecast that Canadians and newcomers can expect to pay more for food in 2024. It is estimated that the average family of four in Canada will shell out $16,297.20 for food in 2024, an increase of up to $701.79 from the previous year. The report predicts that the most significant increases will be seen in bakery, meat, and vegetable prices, with an expected rise of 5% to 7%.
The Canada Food Price Report for 2024 attributes the anticipated rise in food prices to political, environmental, and economic instability, both within Canada and globally. The report explains that energy and commodity prices have been significantly impacted by these factors. However, despite the expected increase, the overall outlook for food prices in 2024 is better than previously predicted in the 2023 report. While the 2023 report expected an overall price increase of 5% to 7%, the 2024 forecast suggests that overall food prices will only rise by 2.5% to 4.5%.
According to the report, residents of Quebec, Prince Edward Island, and Newfoundland and Labrador are expected to spend less on food in 2024. However, it is concerning that people in Canada are spending less on groceries than they did in 2022, which may indicate that they are either eating less or purchasing lower-quality food.
To address the rising prices, Finance Minister Chrystia Freeland introduced the Affordable Housing and Groceries Act, which aims to change competition laws to incentivize major grocery chains to lower prices. The Act grants the Competition Bureau increased powers to investigate allegations of unfairness or price fixing and take enforcement action. The Bureau will also be able to block company collaborations or mergers that discourage competition and limit consumer choice. Despite claims from companies like Loblaws that high food prices are due to inflated supplier prices, the Food Price Report explains that rising prices are heavily influenced by climate change and global events, such as the current situation in Ukraine and the Middle East.
For newcomers to Canada who may be concerned about rising food prices, there are strategies they can adopt to save money on groceries. Planning ahead, finding stores with the lowest prices, using coupons, and shopping later in the day for discounted food can all help reduce grocery expenses. Local, independent greengrocers are also often more cost-efficient for fresh produce than larger stores.
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