A spokesperson said the drop-in inflation rates have been helped by slowing price increases for products including meat, dairy, tea, and coffee. The high inflation levels experienced in September 2023 have also fallen out of the 12-month calculation window, contributing to the improved figures.
However, it should be noted that while this is good news, inflation and prices remain considerably higher than usual and pressures remain on consumers. And while inflation has fallen for groceries, some products are still seeing increases. For example, bakery and fresh food products saw rises, as did oils and edible fats.
Professor Of Food Agriculture And Resource Economics At The University Of Guelph, Mike von Massow, explained that factors like the war in Ukraine and extreme weather conditions have helped to limit supply, keeping prices higher than usual. Massow went on to explain that figures are unlikely to return to normal for as long as pressures like the war in Ukraine continue to put strains on supplies of grain and other exports.
Although there are glimpses of the world recovering to pre-pandemic levels, many households in Canada and globally are still struggling to pay for the necessities. As a result, Canadian grocers are under pressure to help provide affordable food, particularly with winter approaching which will increase many food prices.
Canadian Grocers have responded to the pressure and grocery chain managers met with the Industry Minister, François-Philippe Champagne. During the meeting, it was agreed that grocery chains will work with the government to help stabilize prices, although the details have not yet been announced. The Minister has also said publicly that he would like the grocery industry management to be “more forthcoming”.
Despite the good news overall, Mike von Massow went on to say that Canadians should expect to see grocery price rises in the coming months as winter takes hold. However, he also suggests that a change in shopping habits may help consumers avoid higher prices caused by seasonal fluctuations.
Massow also went on to say that despite upcoming price rises, the government has adapted their approach. Massow then said that he was sceptical about the reasons behind the latest figures, but is optimistic about the future regardless.
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