A new report issued by the Agricultural Food Analytics Laboratory at Dalhousie University expects that the cost of feeding a family of 4 members on average will be more than $1000 in 2023.

The report indicated that Canadians will witness a 5-7% increase in food prices this year.

The report also pointed out that price increases will mean that the Canadian family of 4 will spend about $16,288 annually on food, an increase of $1,065 compared to the annual food cost observed in 2022.

The largest increases in food prices are expected to appear in vegetables, dairy products, and meat.

This report is an annual collaboration with 3 other universities across Canada: the University of Guelph, the University of Saskatchewan, and the University of British Columbia.

It is worth mentioning that the researchers, when creating this report, used a new forecasting model, which includes historical data alongside additional variables for expected inflation and the exchange rate of the Canadian and American dollars.

Vegetable prices are also expected to rise by 6-8% in 2023, which is the largest price jump among food categories, while fruit prices will witness a 3-5% increase.

At the macro level, factors such as climate change, geopolitical risks, energy costs, and inflation are expected to have a very significant impact in raising food prices in 2023.