Food prices eat in to household incomes
Car-driving Canadians continued to receive a welcome reprieve from lower gasoline prices in December. But for those that like to eat, which is likely most, food prices have persistently escalated and are predicted to remain costlier in the coming months.
“Inflation is at a two-year low but that’s not the way it feels for those of us shopping for groceries,” said Avery Shenfeld, senior economist at CIBC World Markets.
The cost of food rose 7.3% in 2008, inching up 0.3% in December for a fourteenth straight month of increase, Statistics Canada figures showed Friday. Marking the sharpest increase was the cost of fresh vegetables, which were 26.9% higher than in December last year. Other notable increases included a 18.9% rise in fruit prices, a 12.4% increase in bakery product prices, a 6% rise in the cost of dairy products and a 5.5% increase in meat prices.
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