Grocery bills set to rise four per cent next year

Food prices are expected to rise two to four per cent next year, which could squeeze low-income earners, food banks and restaurants, local officials suggested Wednesday.

The average Canadian household will spend up to $345 more on food in 2016, says the annual Food Price Report from the University of Guelph’s Food Institute.

The average household of four will fork over $8,631 on food in 2016 including more than $2,400 on restaurant meals, said the report which was released Wednesday night.

“When general inflation is low and salaries don’t actually move up all that much, and Windsor is certainly an example of that over the last few years, you’re basically forcing consumers to make sacrifices,” said Sylvain Charlebois, the lead author and professor of food distribution and policy at the institute.

Last year, the cost of food in Canada went up 4.1 per cent overall, although some things such as vegetables jumped about 10 per cent in price.

The foods predicted to increase the most next year are meats, fruits and nuts, which are expected to rise 2.5 to 4.5 per cent. And if meat prices have you considering becoming a vegetarian, think again. The report predicts the price of veggies to rise two to four per cent thanks in part to our low Canadian dollar, which makes imported food pricier, Charlebois said.

June Muir, CEO of the Unemployed Help Centre and president of the Windsor Essex Food Bank Association, said what’s going up the most is healthy food. Higher prices will hit both the food banks, which buy staples such as meat, and the people who rely on them.

“Everybody looks for milk, meat, fruit, vegetables because those are the expensive items that they can’t afford to purchase now,” Muir said.

She said the Plentiful Harvest Food Rescue Program does get fruits and vegetables to food banks. Low-income earners including students and seniors are trying to balance rent, energy bills and finding nutritional food. People just can’t do it, Muir said.

United Way CEO Lorraine Goddard said rising food prices have a greater impact on low-income earners.

“The greatest growth of food bank users are those who are employed but are unable to afford the staples — things like food, rent and hydro.”

Windsor restaurant owner Mark Boscariol said the rising prices may push some local restaurants out of business. Many will have to put up menu prices. He said he hates to use the term perfect storm but that is what is happening between rising overhead costs such as energy and pricey food such as $8 a head for cauliflower.

“You’re getting squeezed on both sides. Our labour is going up tremendously on one side and now our food costs are going up on the other side and I think what you’re going to see in the next 12 months is the shakeout in the industry,” Boscariol said.

Charlebois said food in restaurants is expected to increase 1.5 to 3.5 per cent.

Consumers will need to be more strategic when shopping and cook at home more to save money, he said.

Charlebois said prices are high in Canada because competition at the retail level in Canada is not as robust as it used to be, commodity prices are up and the low dollar makes imported food more expensive, he said.