Seafood up, bakery steady: What to expect from food prices in 2017
Trump presidency could increase food prices further
Canada's Food Price Report was released Tuesday, with bad news for seafood lovers but good news for those who appreciate a slice of pie.
Overall, the report is predicting significant increases in food prices, with overall expenditures up three to five per cent.
Each aisle in the grocery store is likely to perform a little differently, said lead author Sylvain Charlebois, professor of food distribution and policy at Dalhousie University.
- Dairy and Eggs: Up 0% to 2%
- Fruits and Nuts:Up 3% to 5%
- Bakery and Cereals: Up 0% to 2%
- Meats: Up 4% to 6%
- Vegetables: Up 4% to 6%
- Other Food Items: Up 4% to 6%
- Fish and Seafood: Up 4% to 6%
Import prices on the rise
Canadians can expect to see price increases especially where the food supply is dependent on the U.S., said Charlebois, such as in fresh produce.
American interest rates are expected to rise, while Canadian interest rates remain steady. This is likely cause the value of the loonie to fall, which will in turn increase the price of imports.
The election of Donald Trump could also have an impact, should he make good on his promise to deport illegal immigrants.
"Over two million illegal immigrants support American agriculture right now," said Charlebois.
"If you are to get rid of these people who is going to harvest the food?"
The loss of those foreign workers will either lead to more expensive labour in the fields or no labour at all. In either case, farm gate prices are likely to go up.
If you buy local, said Charlebois, there is both good news and bad news.
The bad news is you are probably paying more now than you would if you were buying imported food.
The good news is local prices are less volatile than import prices, so your grocery bill is unlikely to go up as much next year.
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With files from Island Morning