Rise in Food Prices Accelerates in January

The rise in food prices accelerated in January as the overall Canadian inflation rate hit a new 30-year high.

Statistics Canada’s monthly consumer price index on Wednesday showed prices for food purchased from stores up 6.5% year-over-year in January, exceeding the December increase of 5.7%. It also marked the largest yearly increase in food prices since May 2009.

Prices for fresh or frozen beef (+13.0%), fresh or frozen chicken (+9%), and fresh or frozen fish (+7.9%) rose more in January 2022 compared with December 2021. Margarine (+16.5%), as well as condiments, spices and vinegars (+12.1%) were also up compared with January 2021. “Higher input prices and shipping costs, because of ongoing supply chain disruptions, have contributed to the increase in the price of food,” StatsCan said.

In addition to supply chain disruptions, unfavourable growing conditions – including this past year’s drought on the Canadian Prairies - have led to higher prices for fresh fruit (+8.2%) and bakery products (+7.4%).

The overall inflation rate jumped 5.1% in January, the most since September 1991. It was also the 10th consecutive month the inflation rate topped the Bank of Canada’s target range of 1-3%.

Shelter costs rose 6.2% in January, the fastest pace since February 1990, while gasoline was up 4.8%. Consumers also paid more for alcohol in January 2022, as alcoholic beverages purchased from stores rose 2.9%, following a 1.6% gain in December 2021.

“COVID-19 pandemic-related challenges continue to weigh on supply chains, and consumer energy prices remain elevated,” StatsCan said. “Taken together, Canadians continued to feel the impact of rising prices for goods and services, especially for housing, food and gasoline.”