Inflation down but food prices continue to stay high

The squeeze is being felt at check-out counters across the country as food price inflation continues to track above the rate of inflation in Canada.

“The chain stores are so powerful, and buy so much product that they really control the market for themselves,” said Fred Bouzide, who owns Fred’s Farm Fresh International Market in Windsor.

He tries to keep his costs down for customers but notes it’s tough to compete with the big players, recognizing more independent grocers creates more competition and usually, better prices for everyone.

“Sometimes we can beat their price, that's where we have the advantage,” said Bouzide.

According to Food expert Sylvain Charlebois, food inflation currently rests at 7.5 per cent, more than double the rate of inflation, which for the month of May reached 3.4 per cent.

Earlier this year, Charlebois authored a report estimating Canadian families of four will spend $16,000 this year on groceries.

“Food inflation has been so violent in people's lives that people are starting to spend less on food, not more, despite inflation,” Charlebois said, adding the problem is when people look to trim their grocery bills, they typically skimp on important stuff.

“I think there are many people out there making several nutritional compromises along the way every single day,” he said.

That’s painfully glaring at the Unemployed Help Centre Food Bank.

That facility alone serves 6,000 people per month and rising and its running out of donations.

“Think about where you're donating because we do want to get those nutritional food items in for people,” said June Muir, who is currently at a food banks Canada conference where it’s the same story across the country.

“Our clients are all struggling with trying to buy nutritional food and they're all accessing the food bank,” said Muir.

The UHC recently had to shift away from offering food once a week because of a shortage of donations and added demand on their services.

“We've had to reduce to twice a month because we just don't have the food donations coming in. It's been very difficult,” she said.

Price forecasters don’t see any end to the food inflation in sight. With new taxes coming into effect this summer, its expected high shipping costs will likely keep food prices above the rate of inflation.

“I hope the supply gets higher on everything and prices come down, but I don't know if there's any relief in the future,” said Bouzide.