The inflation rate on food prices has been falling for a few weeks

0
195

The food price inflation rate has been falling for several weeks

Food inflation should be lower in the coming months.

Recent data indicates that the rate of inflation on the price of food is down in Canada.

After reaching almost 10% in one year, food inflation should be less significant in the coming months. The price of some foods continues to rise, while others stabilize or even decline.

The inflationary push in food is beginning to wane. Economist Sylvain Charlebois, director of the Agri-food Analytical Science Laboratory at Dalhousie University in Halifax, explains that several factors lead to a reduction in inflation.

The effects of the pandemic should continue to ease, he said. Most of the COVID-related measures are probably behind us, logistics measures, which could impact chain efficiency, so it's easier for businesses to plan ahead .

Also, commodity prices have gone down. As far as all foodstuffs are concerned, wheat, barley, sunflower, soybeans, everything is down, so there is less pressure on processing, the cost of inputs is under control, energy costs are also down, notes Sylvain Charlebois.

“The food inflation rate is expected to continue to decline.

— Sylvain Charlebois, Director of the Agri-Food Analytical Science Laboratory, Dalhousie University, Halifax

According to the economist, the worst is behind us. We believe that maybe the 9.7% inflation rate we saw in May was the peak.

In recent months, grocery discounts have become increasingly rare. That could change.

Industry is allowed to plan ahead and potentially offer discounts, promotional products, recall products, things that we haven't seen much for two, three years, says Sylvain Charlebois.

Sylvain Charlebois, director of the Agrifood Analytical Science Laboratory at Dalhousie University, Halifax, says inflation rates in the food sector are expected to continue to decline.

The director of the Agrifood Analytical Science Laboratory also points out that some products are now less expensive than six months ago. Chicken and pork are cheaper than in December […] there is still something to be happy about there, we see that things are more stable, there are certain products that are cheaper than in December, he notes.

But the price of certain foodstuffs, such as dairy products in particular, will continue to rise. And for many foods, prices are still 10% higher than last year.

In this context, consumers are changing their habits. We're going to visit other stores, discount stores, we're even going to visit dollar stores, by the way food sales in dollar stores are up 18% since April, according to Nelson IQ, so we see it, the consumer moves, changes strategy to save as much as possible.

Even if there is a decrease in inflation in food, for several households, which have never managed to recover the purchasing power lost for a year, the situation remains precarious. This is according to Gabrielle Ross-Marquette, union co-president of the Common Front for Social Justice of New Brunswick.

Inflation, as we see it, even if it stabilizes, still has a very great impact on the people who are the most deprived in our society, deplores Gabrielle Ross-Marquette.

For many, income has not kept up with inflation. The problem with that is that most family and individual incomes don't have that price hike, so people are really having a hard time making ends meet. -elle.

Gabrielle Ross-Marquette, union co-president of the Common Front for Social Justice of New Brunswick, says households are far from having absorbed the inflation of the past twelve months.

Several people are also predicting general inflation around 5% for next year, and 4% for 2024. Even if this is far from the 10% that was reached in one year, it still represents a serious challenge for many.

That is still, probably, a loss of wages or real income for families and individuals who have lower incomes, argues Gabrielle Ross- Marquette.

According to her, governments should better regulate the food sector. Regulations should be put in place, she said, on how much food-supplying multinational corporations can make a profit on food. By having regulations on this, a policy on this, it could lighten the burden for individuals.

The spokesperson for the Common Front for Social Justice also believes that the governments should offer some of their services for free, to help struggling households. She cites public transit as an example. She would also like the province to impose a cap on rents lower than the 3.8% that is in effect until December 31, as well as a larger increase in the minimum wage.

LEAVE A REPLY

Please enter your comment!
Please enter your name here