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Canada: Food prices are rising faster than overall inflation

Canada: Food prices are rising faster than overall inflation

By Omayma othmani

Published: December 21, 2022

Grocery inflation in Canada rose again in November with increases in the prices of staples like bread, eggs, and dairy products.

Food prices purchased from stores also rose by 11.4 percent last month compared to last year, up from 11 percent in October, according to Statistics Canada figures released on Wednesday.

Grocery prices have now risen faster than overall inflation for 12 consecutive months.

The country's annual inflation rate also fell slightly in November to 6.8 percent.

Coffee and tea prices rose by 16.8 percent in November, while prices for items such as butter increased by 23.1 percent, eggs rose by 16.7 percent, and bread, rolls, and cakes rose by 18.2 percent.

Other items with price jumps include sugar and syrup, up 18.8 percent year over year, pasta products by 17.1 percent, lettuce by 31.9 percent, and flour and flour-based mixes by 20.5 percent.

Rising grocery prices are a global phenomenon, with countries like France, Germany, and the UK recording higher food price inflation rates than Canada last month, according to Sylvain Charlebois, a professor of food distribution and policy at Dalhousie University.

However, much Canadian food is produced locally, and prices are increasing due to a combination of factors including higher labor, input, and energy costs.

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