Food prices continue to be one of the biggest drivers of high inflation in Canada.
Consumer Price Index (CPI) Report June inflation was 2.8% y/yfollowing a 3.4% rise in May 2023.
Although the decline was positive, Statistics Canada said it was “fairly broad”.
“Canadian food prices (9.1%) and mortgage rates (30.1%) continued to rise in June, with these indicators being the most significant contributors to headline CPI gains,” CPI said. “The headline index, excluding food, rose 1.7%.”
The agency said gasoline led the slowdown in overall inflation.
Food prices continue to rise each month, but the most expensive items for Canadians fluctuate.
Meat, bakery products, dairy products and prepared foods were the biggest contributors to inflation in June.
fruits and vegetables
Fruit prices rose faster in June than in May, according to CPI.
This was mainly due to a 30% increase in grape prices. From May to June.
This led to higher prices in the ‘other fresh fruit category’ (which includes other berries and cherries) in the CPI Food Breakdown Table.
Orange prices rose 2.3% between May and June, resulting in a year-on-year price increase of 16.5%.
Potato prices in June were 4.8% higher than in May. This was an increase of 9.3% over the previous year.
Banana prices also rose slightly, rising 0.5% from May to June, up 0.7% year-on-year. These are among the commodities that have largely escaped the effects of inflation.
Tomato prices fell by 5.4% from May to June. Year-on-year, it remains one of the more expensive products, 12.6% higher than it is now in 2022.
Some vegetable prices fell in June, reducing the overall year-on-year impact of inflation on this category.
Lettuce prices fell 8.7% from May to June, while inflation fell 6% from a year earlier.
rice, flour, bread
CPI notes that cookies and crackers are among the most affected food items in Canada.
Year-on-year, prices for these commodities increased by 15%, but fell slightly by 0.3% month-on-month.
Breakfast cereal prices increased month-over-month and year-over-year.
Grain prices rose by 1.3% from May to June, resulting in a price increase of 14.8% year-on-year.
Rice was also a food item with higher prices in June than before.
The product increased in price by 1.4% from May to June. Year-on-year, this rose to 9.6% for him.
Wheat flour and flour-based mixes continued to rise in June, up 9.8% year-on-year and up slightly (0.7%) from May.
Conversely, Canadians saw prices of pasta products fall in June. Compared to the same month last year, the prices of these commodities rose by 8.3% last month, while prices fell by an average of 6.3% from May.
dairy products, restaurants, meat
StatCan blamed meat for the high food prices in June.
Fresh and frozen beef led the increase, with Canadians spending 2.1% more in June than in May. These prices represent a 9.4% year-over-year increase in the product.
Fish, whether fresh or frozen, also contributed to meat prices in June.
Year-over-year inflation for these products was 4.8%, up 1.1% from May to June.
Fresh and frozen poultry remained relatively stable in June despite some meat increases.
From May to June, the price of this product fell by 0.6%. The year-on-year inflation rate was 8.1%.
Prices for some dairy products dropped significantly in May and June.
Prices for ice cream-related products were rising in May when the weather started to warm, but by June prices had fallen 3.4%. This remained high year-on-year, with inflation he at 8.5%.
Butter prices also fell slightly, with year-on-year inflation at 8.2%. It decreased by 0.6% from May to June.
Cheese prices continue to rise, up 5% from June 2022, but shoppers saw a modest drop of 0.5% month-on-month.
Egg prices rose slightly (0.2%) from May to June. Year-over-year, this product had him pegged at a rate of 8.9%.
Canadians who purchase food at restaurants may notice a slight increase in meal prices.
After rising in May, restaurant dining continued its upward trajectory, rising 0.3% the following month. This gave him a 6.6% increase over the previous year.
