Grocery Prices are Going to Increase

I found an interesting article from cbc.com that says grocery prices, in Canada, are going to go way up in the near future. Higher grocery costs will surely be a problem for college students living away from home. While we probably will not cut back on the amount of food we are buying, we may find ourselves cutting back on munchies.

"Brace yourself, Canada, for higher grocery bills

Thursday, June 12, 2008, CBC News, Tom McFeat

Any outsider looking at Canada's most recent consumer price index would be forgiven for concluding that we have somehow managed to dodge the food inflation bullet currently ricocheting around the world.

People in most countries are struggling with unprecedented price hikes in the most widely used foods. But a recent look at the cost of living in this country finds that the typical Canadian food basket in April 2008 was just 1.2 per cent more expensive than it was a year earlier.

A little more than one per cent in a whole year! Well done, Canada, we're apparently immune from the laws of supply and demand that dictate food prices everywhere else.
Well, it's time to put away the streamers, the experts say. The warning bells are already sounding. Analysts, farmers and grocery chains all agree that those checkout bills are about to get noticeably bigger.

A look inside the monthly price data from Statistics Canada quickly reveals some of the reasons why. Beneath the broad-stroke appearance of benign food prices lie some important anomalies."

READ MORE

Now it is more important than ever to compare prices, use coupons and generally be a smart shopper. My next posting will offer some tips and resources about saving money at the grocery store.

Discussion: What are your thoughts about the article? Was it interesting or informative?

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