The annual report predicts food costs will grow in Canada in 2024: In 2024, food will cost more for both Canadians and newcomers. Researchers from Dalhousie University, the University of Guelph, the University of Saskatchewan, and the University of British Columbia say that in 2024 the average Canadian family of four will spend $16,297.20 on food.
This is up to $701.79 more than last year. It says that bakery, meat, and veggies will see the biggest price hikes, ranging from 5% to 7%.
The Canada Food Price Report for 2024 came out on December 7. It shows that energy and commodity costs have been affected by political, environmental, and economic instability in Canada and around the world.
Even though the expected rise is happening, the picture is better overall than it was in the 2023 report. According to that report, the general price of food would go up by 5% to 7%. In 2024, prices are expected to go up by 2.5% to 4.5%.
There is also news in the report that people in Quebec, Prince Edward Island, and Newfoundland and Labrador are expected to spend less on food per person.
The study also found that even though prices are increasing, Canadians are spending less on groceries than in 2022. It says that this worries researchers because it means Canadians eat less or get less healthy food.
Competition act
Finance Minister Chrystia Freeland passed the Affordable Housing and Groceries Act earlier this year in response to prices going up.
One of the main ideas behind the Act is to change the competition rules so that big grocery stores are more likely to lower their prices.
It gives the Competition Bureau more power to look into claims of unfair competition or price fixing and take action if necessary.
The Bureau will also be able to stop companies from working together or merging in ways that hurt competition and make it harder for customers to choose.
Galen Weston, who used to be the head of Loblaws Company Ltd, told the Toronto Star that high food prices are not because there isn’t enough competition or because companies set their own prices. Weston said that food store prices are too high because suppliers set their prices too high.
As the Food Price Report says, there is some truth to this. It says that climate change and its bad effects on crops, like floods and wildfires, are a big reason why prices are going up.
It also says that things happening around the world, like what’s happening in Ukraine and the Middle East right now, are making rises worse.
When these things happen, there is less supply, so demand goes up, and suppliers are more likely to raise prices. This can be hard for grocery shops.
Yet, Loblaws’ most recent quarterly report showed that its profits went up by 12%, while the Bank of Canada said that “overall inflationary risks have continued to recede in Canada after dominating the economic landscape.”
How to save money on food as a newcomer to Canada
People who are new to Canada can save money on food in a few ways. You should plan ahead, keep things in order, and look for shops with the best deals.
When making a list of things to buy, looking at store flyers and being ready to go to more than one place can be helpful.
You can also find websites with deals that you can print out or download to save money on food and other things.
When you go grocery shopping later in the day, when food that has yet to sell may be marked down, that’s another good idea. Also, don’t buy more expensive names of pantry items. Instead, buy store brands.
Also, keep in mind that small, local grocery stores are often cheaper than big stores when it comes to fresh food.
Summary:
- Most Canadian families will spend $16,297.20 on food in 2024, up $701.79 from the year before.
- The Canada Food Price Report attributes the spike to climate change and worldwide events, particularly bread, meat, and vegetable costs.
- Despite the hike, 2024’s 2.5% to 4.5% rise is better than 2023’s 5% to 7%.
- Quebec, PEI, and NL residents should spend less on food in 2024.
- Finance Minister Chrystia Freeland’s Affordable Housing and Groceries Act intends to promote competition and cut prices in big grocery stores.
- Planning ahead, checking store flyers, shopping later in the day for discounts, and visiting local stores all help newcomers to Canada save on food.
FAQs on the 2024 Canada Food Price Report and Grocery Shopping Tips
Q1: What does the 2024 Canada Food Price Report predict?
A: The report predicts that food costs will increase in 2024, with the average Canadian family of four expected to spend $16,297.20 on food, up by $701.79 from the previous year. Notably, bakery, meat, and vegetable prices are expected to see the largest increases, ranging from 5% to 7%.
Q2: Why are food prices expected to rise in 2024?
A: The Canada Food Price Report attributes the expected rise in food prices to factors such as political, environmental, and economic instability affecting energy and commodity costs globally and in Canada. Climate change-related issues affecting crops and events around the world, such as those in Ukraine and the Middle East, contribute to supply chain challenges, resulting in higher prices.
Q3: How does the 2024 food price increase compare to the previous year’s predictions?
A: While prices are anticipated to rise in 2024, the increase is projected to be less severe than initially estimated in the 2023 report. The general price of food is expected to go up by 2.5% to 4.5% in 2024, as opposed to the 5% to 7% predicted in the 2023 report.
Q4: Are there regional variations in the expected food expenditures?
A: Yes, the report suggests that people in Quebec, Prince Edward Island, and Newfoundland and Labrador are expected to spend less on food per person compared to other regions.
Q5: What measures has the Canadian government taken to address rising food prices?
A: Finance Minister Chrystia Freeland passed the Affordable Housing and Groceries Act, aiming to modify competition rules to encourage big grocery stores to lower prices. The act grants the Competition Bureau increased authority to investigate claims of unfair competition or price fixing and take appropriate action.
Q6: What are the reasons behind high food prices, according to Galen Weston, former head of Loblaws Company Ltd?
A: Weston contends that high food prices are not solely due to lack of competition or companies setting their own prices. He suggests that suppliers play a significant role in setting high prices. The Food Price Report supports this claim, citing climate change effects on crops and global events as contributors to rising prices.
Q7: How can newcomers to Canada save money on food?
A: Newcomers can save money by planning, organizing their shopping lists, and seeking the best deals at different stores. Shopping later in the day when items are marked down, opting for store brands instead of expensive name brands, and exploring small, local grocery stores for fresh food are also recommended.
Q8: Are there specific tips for newcomers to save money on groceries in Canada?
A: Yes, newcomers can benefit from checking store flyers, using websites with printable or downloadable deals, and considering late-day shopping for discounted items. Additionally, prioritizing store brands and exploring local grocery stores for fresh produce can help save money.
Check out our Web Story at The annual report predicts food costs will grow in Canada
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