Despite slowdown, prices still high
While overall inflation in Canada has slowed to 2.8 percent, grocery prices continue to rise at a faster rate of 3.9 percent. Experts attribute the persistent food inflation to supply chain issues and potential climate-related impacts on crop production.
Why it matters
The disparity between general inflation and food costs directly impacts household purchasing power and economic stability for Canadian families.
MONTREAL – Inflation numbers held some good news for Canadians in June, but the price tag to feed families continues to rise.
June marked the 17th consecutive month that grocery price inflation outpaced the all-item consumer price index (CPI). While overall inflation slowed to 2.8 per cent, for groceries alone it was at 3.9 percent.
“It’s not exactly clear why this is the case, but over the last five years grocery prices have increased 30 per cent,” says DT Cochrane, a senior economist with the Canadian Labour Congress.
In June, the price tag for fresh or frozen chicken was up 5.7 per cent while bread rolls and the cost of buns rose by six per cent more compared to May.
The slowdown in food inflation from 4.3 per cent in May to 3.9 per cent in June is due in part by lower prices of fresh fruit, including grapes.
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