A new report predicts that grocery inflation will fall below two per cent by the spring and stay roughly between one and two per cent for the rest of 2024.
Farm Credit Canada, an agricultural lending firm, says it expects food price increases beyond 2024 to stabilize around pre-pandemic levels.
The organization’s annual food and beverage report offers up forecasts for consumer spending, as well as specific food items such as sugar and flour.
Canada’s annual inflation rate was 2.8 per cent in February, and grocery prices were one of the main factors pushing it lower.
Grocery inflation was 2.4 per cent that month, down from 3.4 per cent in January as the cost of many items declined year over year.
However, slowing inflation doesn’t mean prices overall are dropping. Statistics Canada noted in its latest release that between February 2021 and February 2024, grocery prices rose 21.6 per cent.
This report by The Canadian Press was first published April 10, 2024.
