Inflation is finally decelerating in Canada, but it’s a bittersweet milestone for the country’s residents, who are sick and tired of hefty food prices.
Statistics Canada released its Consumer Price Index for June, reporting that general inflation fell at an impressive rate, from 3.4% in May to 2.8% in June.
That said, grocery prices rose year-over-year by a disappointing 9.1%.
Minister of Finance Chrystia Freeland tweeted that this is the lowest Canada’s inflation has been in over two years and is back within the Bank of Canada’s range. The bank increased its key interest rate to 5% last week.
Inflation in Canada is now down to 2.8 per centāthe lowest in over 2 years and back within the Bank of Canadaās target range. And it is now lower than in any other G7 country.
ā Chrystia Freeland (@cafreeland) July 18, 2023
Freeland added that Canada has the lowest inflation rate of all G7 countries. But unfortunately, Canada’s household debt is also the highest of them all.
Now, things are looking up in some departments, but Canadians continue to suffer for basic needs like food and shelter.
Goods and services ā such as clothing, household operations, personal cars, and recreation ā became cheaper compared to May.
Food inflation stayed high and housing costs increased.
Statistics Canada
“Grocery prices remain one of the largest contributors to the all-items CPI,” Statistics Canada stated.
The most significant contributors as far as food goes were meat (+6.9%), bakery products (+12.9%), dairy products (+7.4%), and other food preparations (+10.2%).
“Fresh fruit prices grew at a faster pace year over year in June (+10.4%) than in May (+5.7%), driven, in part, by a 30.0% month-over-month increase in the price of grapes,” Statistics Canada said.
“Food purchased from restaurants continued to contribute to the headline CPI increase, albeit at a slower year-over-year pace in June (+6.6%) than in May (+6.8%),” it concluded.
Earlier this month, the feds issued one-time grocery rebate payments to Canadians in need. This program drew ire for its stringent eligibility requirements, especially withĀ the jarring contrast of high food inflation.
This is a band-aid on a mortal wound for many Canadians.
ā Scott Barber (@thescottbarber) July 5, 2023
Some have called it a “band-aid” solution for a bigger problem.
How are you dealing with rising food costs? Let us know in the comments, or email us at [email protected] to share your story.
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