In the News: Why are Foods Going up in Price in Canada?

March 22, 2023 | Hamilton, ON
Contributed by CTV News

A young woman in a medical mask with a smartphone in her hand scans the grocery store product, contemplating increased food prices.

As of February 2023, Canadians are faced with a 5.2% inflation rate – the largest deceleration since April 2020. Despite the rate of inflation slowing down, food prices are still at the highest they have been in the past year. William Huggins, Lecturer in Finance and Business Economics at the DeGroote School of Business shared his thoughts on CTV News this morning.

“A lot the food prices are still going up, mostly because we’ve had problems internationally with supply chains,” says William Huggins, “We’ve had problems, for instance, with Avian Flu. We’ve had this in the States, it’s now threatening in Brazil. There are problems with African Swine Fever in China. We’ve had trouble getting enough employees to come back post-pandemic; there are still supply chains snarled up, for the most part.”

Despite the rate of inflation slowing down, reports indicate that food prices will continue to increase by anywhere from 3% to 5% throughout the year. However, while grocery prices continue to rise, some other commodities are slowly decreasing in price.

“There are certain things that have given us a little bit of a bright patch in terms of inflation, which has helped to bring down the overall inflation rate,” Huggins adds, “You’ve probably noticed that at the gas pump that oil prices are down, so energy prices have fallen a little bit.”

Watch the full news segment here.

William Huggins

William Huggins

Lecturer, Finance and Business Economics

William Huggins teaches courses in corporate finance, economics, and statistics, with further interests in international trade, pensions, and financial history. Before joining DeGroote in 2018, he taught at the University of Toronto for 10 years.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Comment Policy

We generally welcome discussion on our blog posts. However, we reserve the right to edit or delete comments in certain situations:

  • Comments which include unrelated or suspicious links or messages (spam).
  • Comments which are off topic.
  • Comments which attack or threaten individuals or a group of people.
  • Comments which include profanity or messages that would generally be considered offensive or inappropriate by the McMaster community.

This site is moderated by the DeGroote Marketing and Community Engagement team. If you have any questions please email Katie Almas.