Canada Grocery Price Hike 2024 – What will be the Increase in Price of Groceries in 2024?

Updated on April 6, 2024

In contrast to an average increase of five to seven percent in 2023, a recent analysis projects that Canada’s average inflation rate for food goods will increase between 2.5 and 4.5 percent in 2023. A report states that by 2024, the overall rate of inflation will have decreased to a range of 2.5 to 4.5 percent. The largest increases are between 5 and 7% for bread goods, vegetables, and meat. In 2024, there may be a slight deflationary phase that lowers the price of a number of staple foods.

By 2024, the primary drivers of rising food prices will be energy price increases, inflation, and climate change. Inflation, food prices, and buying power may also be impacted by geopolitical tensions, family financial constraints, and current and proposed laws and regulations, such as Canada’s bill C-56 regarding grocery competition and the food industry’s plans to reduce plastic packaging. I’ll go over the Canada Grocery Price Hike 2024 and the reasons behind the country’s rising food prices here.

Canada Grocery Price Hike 2024

According to the 14th edition of Canada’s Food Price Report, food prices will rise by 2.5 to 4.5% in total in 2024. By contrast, the average was 5.9% in 2023 and 10.3% in 2022. Every year, researchers from the University of British Columbia, Dalhousie University, the University of Guelph, and the University of Saskatchewan collaborate to produce a study that examines the consequences of rising food prices on Canadians as well as possible reasons for these trends.

The study estimates that in 2024, the average Canadian family would spend $16,297.20 on food, an increase of $701.79. This implies that despite inflation, Canadians spent less on food in 2023. This suggests that in order to save money on groceries, Canadians either reduced the quantity or quality of food they purchased or swapped out pricey items for cheaper ones.

Canada FPR Predicts Families to Pay $ 700 More in 2024

According to Canada’s FPR, food prices will rise in 2024 but not as much as they did in the year prior, which comes after the rising cost of groceries attracted a lot of attention in the previous year. The annual estimate, which was released by the Universities of Guelph, Dalhousie, BC, and Saskatchewan, predicts that food prices in Canada will increase by 2.5 to 4.5 percent by 2024, or up to $701.79 for a family of four.

This is nevertheless difficult for many families, whose budgets are already tight due to rising housing, utility, and loan prices, even though it is less than the 5–7% increase that is anticipated for 2023.This suggests that Canadians might be buying less food overall or lower-quality food overall due to other rising costs.

Canadian food price increases Predictions 2024

  • Bakery: 5% to 7%
  • Dairy: 1% to 3%
  • Fruit: 1% to 3%
  • Meat: 5% to 7%
  • Other: 2% to 4%
  • Restaurants: 3% to 5%
  • Seafood: 3% to 5%
  • Vegetables: 5% to 7%

In 2024, where do Canadian food prices go?

Regarding the report, Canadians continue to have serious concerns about food affordability, predicting an increase in food prices of 2.5 percent to 4.5 percent overall. In 2024, a family of four is projected to spend $16,297.20 on food, a $701.79 increase from the previous year.According to the report, the most noteworthy increases in the categories of meat, vegetables, and bakery range from five to seven percent.
Most Canadians, excluding those who maintain the belief that food prices are solely set by one individual or one company, are aware that the ongoing rise in food prices is a reflection of larger inflationary pressures on the economy.

Costs are rising for more reasons than just food; these include increased expenses for manufacturing and transportation as well as the effects of global economic fluctuations. Food prices have been rising steadily as a result of these factors coming together, creating a challenging economic issue.

Canada Grocery Price Hike 2024

Why are food prices rising in Canada?

According to some experts, the sharp rise in food prices could be caused by practices such as unfair profit-making, rising grocery prices, or carbon taxes. Grocery store profits have risen since the pandemic began, but they have only fallen or stayed the same in 2022 due to inflation.

Meanwhile, geopolitics and climate change are expected to have an impact on food price fluctuations in 2024. Furthermore, it is projected that growing costs such as high loan rates and food prices will further strain Canadians’ finances.

With the exception of bread items, which were expected to cost less, and dairy products, which were expected to cost more, the range of projected food costs for 2023 was noted. Regarding food inflation, Canada came in third place out of the G7.
In actuality, Canadians spend less on food than they ought to. In 2023, Canadians reduced their retail food and beverage spending by 3.26 percent. Consequently, 2023’s total food expenditure was lower than projected.

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