Canada’s inflation rate is plummeting, so why are grocery prices still so expensive?
Canada’s inflation rate is plummeting, so why are grocery prices still so expensive?
Economists say there are a number of factors driving up food prices, but they expect food inflation to slow over time. Here's a look at what’s behind Canada’s high grocery prices and what to expect in the coming months.
TLDR; climate change, Russia, supply chain not recovered, labor shortages; more price increases expected :/
You're viewing a single thread.
A lower Inflation rate doesn’t equate to lower prices. It equates with those prices not rising as much and as fast…but as long as the rate is positive, those prices are still going up.
True, except the rises so far have been much larger than inflation warrants, with the expectation for a correction at some point, which is what the article discusses.
Until the conflict in Ukraine is resolved, I’d expect those prices to still be up. Wheat and oil being impacted in that conflict have major repercussions across the supply chain across the world.
Wheat today is only worth half of what it was last year.
I expect the prices to still be up only because it takes a while to work through the system. Similarly, it took a while after farm gate prices started climbing over the past several years before prices at the store started going up. Give it another year and things will look quite different, even if the Ukraine conflict persists.