B.C. small businesses face cost challenges as national inflation rate hits 31-year high
CTV
The rising cost of food, shelter, and other expenses pushed Canada's inflation rate to a 31-year high last month. People are paying a lot more for many basic needs than they were last year at this time, and small businesses are also struggling to manage higher prices for the goods they need to keep going.
The rising cost of food, shelter, and other expenses pushed Canada’s inflation rate to a 31-year high last month. People are paying a lot more for many basic needs than they were last year at this time, and small businesses are also struggling to manage higher prices for the goods they need to keep going.
At Gabi & Jules bakery and cafe in Port Moody, flour is a key ingredient for the baked goods made by hand on site. It’s also not the only recipe component that’s become more costly, according to co-owner Lisa Beecroft.
“The price increases across the board are a huge concern and struggle,” she said. “We’ve seen dairy go up by almost 15 per cent, flour’s almost doubled.”
Produce is also on that list of higher prices. Beecroft said she's seen the cost of goods her business relies on creep up over the past year, at a time when fuel surcharges and rent increases are also adding pressure.
“You just feel squeezed on all sides, so I think it’s just really challenging us to be as agile as we can,” she said. “If we can’t afford to sell certain things, we just can’t, because you can only increase your prices so much.”
In April, Canada’s inflation rate was 6.8 per cent, according to the latest Consumer Price Index from Statistics Canada: a 31-year high.
The price of food at grocery stores jumped 9.7 per cent over the same time last year, while the cost of fruit rose 10 per cent. The price of vegetables climbed 8.2 per cent, and meat prices increased 10.1 per cent compared to last April.
