News Inflation
Dairy prices are driving high inflation in Canada
Food inflation in Canada was 8,7% in March compared to the same period last year. Food inflation is therefore higher than the general inflation rate in the North American country, which was 6,7% last month. Rapidly rising dairy prices are the main driver of food inflation.
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As in many countries, Canada cannot escape monetary devaluation. In contrast to the Netherlands, food inflation in Canada is higher than overall inflation and that is striking. Overall inflation obviously weighs more heavily on consumers' spending patterns, but according to the Bank of Canada, the psychological effect of food inflation is greater. This happens every week.
The rapidly rising dairy prices in supermarkets in particular are driving food inflation. The price of butter stands out with a price increase of 16%, but cheese prices have also risen by 10% in one year. Such price increases have not occurred since 1983. In addition to dairy, meat prices have also risen by 10% to 15%, the largest increase since the early 90s.
Supermarkets are seeing profits rise
Consumers are watching food prices with suspicion, especially since the country's three largest supermarket chains (Loblaw, Sobeys Parent Empire and Metro) reported higher profits during their latest quarterly reports, which also surprised analysts. The big grocers say that the benefits are driven by aspects other than increased food prices. According to the supermarkets, the higher food prices are a result of the increased prices at the beginning of the chain.