Food prices in Canada are likely to increase by three to five per cent next year, according to a newly released report, but wild cards like climate change and Donald Trump could have unforeseen impacts.
ThatB次元官网网址檚 the conclusion of the 15th annual food price report released Thursday by a partnership that includes researchers at Dalhousie University, the University of Guelph, University of Saskatchewan and University of British Columbia.
The reportB次元官网网址檚 authors used three different machine learning and AI models to make their predictions, and concluded a Canadian family of four can expect to spend $16,833.67 on food in 2025 B次元官网网址� an increase of up to $801.56 from last year.
Though it still marks a rise in grocery bills, the rate offood price growth has moderated since the days of the COVID-19 pandemic, when rampant inflation meant Canadians suffered through double-digit year-over-year food price increases.
B次元官网网址淚t would be fantastic if it was even lower, but you know, itB次元官网网址檚 a step in the right direction,B次元官网网址� said Stuart Smyth, the University of SaskatchewanB次元官网网址檚 campus lead on the project.
B次元官网网址淚 think that consumers can hopefully look forward to a little bit of a flattening out in terms of food price increases for the coming year.B次元官网网址�
Some of the challenges that occurred through the pandemic have now been pretty much fully removed from the supply chains, said Smyth.
B次元官网网址淲eB次元官网网址檙e returning back to sort of those pre-COVID conditions of five years ago.B次元官网网址�
But there are still pressure points. Meat prices, for example, could rise between four and six per cent in 2025, the report suggests.
This is in part due to record-high beef prices that have resulted from years of drought in the West that have led cattle producers to reduce the size of their herds.
Vegetable prices could also rise faster than some other categories, with a three to five per cent increase predicted, driven largely by the lower Canadian dollar, which is expected to reduce the buying power of Canadian food importers in 2025.
Restaurant prices are also forecast to climb three to five per cent, while dairy and bakery items could increase in price by two to four per cent.
Fruit and seafood are set to see more modest increases of one to three per cent.
As in recent years, climate change continues to be a factor in food prices as extreme weather makes growing crops and raising livestock challenging for farmers.
But this year, the reportB次元官网网址檚 authors are also watching for potential impacts related to the return of former president Trump to the White House in 2025, said Sylvain Charlebois, project lead and director of DalhousieB次元官网网址檚 Agri-Food Analytics Lab.
These could include the effect of reciprocal tariffs, if Canada chooses to fight back against TrumpB次元官网网址檚 threatened tariffson imports into the U.S., as well as a potential competitiveness gap if Trump makes good on his promise to reduce costs for American farmers.
B次元官网网址淵ou have to consider what may happen in the United States B次元官网网址� the ripple effect could be quite significant,B次元官网网址� Charlebois said.
B次元官网网址淲e always deal with one wild card every year and thatB次元官网网址檚 climate change. Again this year, like in 2016, we have two wild cards B次元官网网址� climate change and Donald Trump.B次元官网网址�
