Grocery prices unlikely to fall anytime soon, experts say
CTV
Despite the declining headline inflation rate, the food inflation rate in Canada has remained high at 11.4 per cent in January, and experts say it may be a while before grocery prices head in the other direction.
Despite the declining headline inflation rate, the food inflation rate in Canada has remained high, and experts say it may be a while before grocery prices head in the other direction.
"I'm afraid I can't be the bearer of good news," Gary Sands, senior vice-president of the Canadian Federation of Independent Grocers, told CTV News Channel on Tuesday. "I don't see any relief in the short-term coming."
Numbers from Statistics Canada's latest inflation report, published Tuesday, showed that in January, food prices saw a year-over-year increase of 11.4 per cent, up from 11 per cent the previous month. Since last August, the food inflation rate has been above 10 per cent.
In a research note published on Friday, RBC economist Claire Fan said global economic conditions suggest that the food inflation rate could slow down this year.
"Growth in grocery prices ticked slightly higher again in January, to 11.4 per cent year-over-year. That is still an exceptionally high rate of price growth, but lower agricultural commodity prices and easing global supply chain pressures are expected to slow food price growth this year," Fan wrote.
But even if the food inflation slows, David Macdonald, senior economist with the Canadian Centre for Policy Alternatives, says that doesn't mean food prices are coming down.
"This is one of the things, I think, that's misunderstood about inflation. These prices aren't going away. They might just slow a bit," he said in an interview with CTV News Channel Tuesday.
