Report predicts record jump in food prices

Canadians will have to stretch their food budgets further in 2022.

Canada’s Food Price Report 2022 forecasts an overall food price increase of five to seven per cent for the coming year, the highest-predicted increase in food prices since the inception of the report 12 years ago.

The most significant increases are expected in dairy, bakery and fresh vegetables.

“It’s important for consumers to understand that food prices have been going up for some time, and there’s no turning back,” said Dr. Sylvain Charlebois, project lead and director of the Agri-Food Analytics Lab at Dalhousie University.

“Our relationship with food is changing, and so will our food budgets. Showing up at the grocery store knowing what you should be paying will help.”

A family of four could pay up to $14,767 for food this year, an increase of up to $966 from 2021.

The report notes COVID-related disruptions to the food supply chain, adverse weather effects, labour force challenges and high inflation are factors driving up food prices.

“Supply chain disruptions and labour market challenges will persist in 2022,” said Alyssa Gerhardt, a PhD student who worked on the project.

“COVID-19 is still here. The food supply chain will continue to grapple with the cost of sanitation and PPE, high transportation costs and reduced maritime transport capacity, as well as decreased efficiency and disruptions due to closures.”

Saskatchewan, Alberta, British Columbia, Ontario and Newfoundland and Labrador are predicted to see the biggest sticker shock.