Daniels MPV Brampton.Living in Canada costs a lot of money? Food prices in Canada have risen by 2% Mel 4%, and the average Canadian family’s annual supermarket bill will cost an average of C $12667, an increase of C $487 over 2019.Please Visit: Daniels MPV Brampton to Get Your VVIP Registration Today!
One of the main reasons for the sharp increase in prices is the virus pandemic.
“over time, due to epidemic and economic reasons, you will find that the prices of food commodities in supermarkets will indeed rise, while for other products, the status quo will remain for some time,” said Sylvain Charlebois, director of agricultural food analysis experiments at Dalhousie University.
Of course, in addition to the COVID-19 epidemic, another important factor is the fire in California. Canada buys C $3 billion worth of wholesale food from California each year, but many of them actually enter western Canada, British Columbia and Alberta between October and January of the following year.
Charlebois also found from this year’s report that over the past 20 years, the food inflation index is generally about 16 percentage points higher than general inflation.
At the same time, the price of baby food has continued to rise during this period.
But there are also those that remain the same, such as peanut butter, where the price of a can of peanut butter has remained relatively stable or even reduced since 2000. The reason may be increased competition from other brands.
The new coronavirus epidemic in 2020 has changed people’s consumption patterns and spending priorities, such as toilet paper and masks, which have become the focus of hoarding, even at the supermarket, but save a lot of travel expenses.
Now that 2021 is approaching, what will happen to the cost of food, clothing, housing and transportation in Canada next year? Perhaps some of the spending needs will return to the purchase list, or the prices of many goods will go up.
NathanJanzen, a senior economist at the Royal Bank of Canada Institute of Economics, analyzed the increase in spending on some goods and sectors.
Canadian spending on food has risen by 2.5% in 2020, and this trend will continue until 2021. Food inflation exceeds the overall inflation rate.
Royal Bank of Canada (RBC) expects food prices to rise another 2-2.5 per cent in 2021, while the Canadian Food Price report (Food Price Report) expects overall prices to rise sharply by 3-5 per cent: including meat and vegetables, 4.5-6.5 per cent, and fruit prices are expected to rise 2-4 per cent.
According to a joint study by Dalhaus University, Guelph University, the University of Saskatchewan and the University of British Columbia, logistics is disrupted due to the closure of Canadian borders and distribution centers and the shortage of overseas workers. changes in unemployment and consumer demand. Changes in production, manufacturing, distribution, and retail practices to improve safety are considered to be a key reason for the rise in grocery prices in Canada.
It is estimated that by 2021, a family of four will spend another C $695 more on groceries than in 2020.
At the same time, a weaker Canadian dollar will affect the purchasing power of importers, which means that the price of goods entering Canada will also rise. The collapse in oil prices and the weak Canadian dollar pushed up the price of imported goods in 2020, and the study shows that this trend will continue until 2021.
In addition, agricultural prices have not fallen, and demand for raw material products will continue to translate into higher prices.
“Food prices have been in the lead in terms of major categories,” Janzen said. People still have to eat. ” It can be seen that for people with lower wages, the expenditure on food will become a larger share of their income and expenditure.
For many retailers and retail services, the costs associated with COVID-19 responses, from enhanced cleaning measures to the provision of protective equipment and glass shields for employees, will continue to be passed on to consumers.
“all retailers have to spend more money on cleaning, and I think that money is actually on consumers in terms of products, transportation and returns,” Farla Efros, president of HRC retail consulting firm, said in an interview with CTV News. Farla Efros expects prices in all major categories of retail to rise by 5 to 10 per cent.
Coupled with the COVID-19 pandemic, it is necessary for businesses to normalize better cleaning and hygiene procedures in some cases.