Expect Food Prices To Remain High

May 28, 2020

A food professor at Dalhousie University says we better get used to higher food prices.

"This year we were already expecting a high food inflation rate, back in December for 2020. That's not going to change," said Dr. Sylvain Charlebois. "The problem is that the general inflation rate is going to be very low, so 4% will probably feel more like a 10%. It's good news for people who want to stay home and cook because you'll save money but it's bad news for people who will likely go back to their old ways, go out to the restaurant because you're probably going to be spending way more than before."

Charlebois notes on the supply side, COVID-19 is making everything more expensive, adding new cleaning protocols, higher salaries, and building infrastructure for e-commerce will all cost more.

On the flip side, he adds each household in Canada is saving approximately $5 a day by cooking at home and avoiding restaurants.

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