Food inflation: How Canada's grocery prices compares to other nations
Many Canadians are struggling to adjust spending habits at the grocery store as food inflation continues to bring sticker shock at the checkout.
On a global scale however, Canadian food prices are surprisingly among the lowest, according to one study.
A report published in May by e-commerce platform Ubuy compared Canadian food inflation rates to the U.S., U.K., Australia and the European Union. Gathering data from three separate timeframes over the past 12 months, three years and five years, researchers were able to find food inflation ranges differently among several nations.
Globally, the report found on average food inflation increased by 18.2 per cent in the last 12 months, 30.8 per cent in the last three years and 36.3 per cent in the last five.
The U.K. and European Union saw the highest inflation spike with both seeing a jump of 19.6 per cent over the last 12 months. The country with the highest reported food inflation was Hungary with an increase of 45.1 per cent during the 12-month period. Conversely, the nation with the lowest food inflation was the EU nation of Cyprus, which saw an increase of 6.1 per cent.
HOW DOES CANADA COMPARE?
Despite Canadian food prices reaching new heights in 2022, in comparison to other nations, Canada ranked the second lowest nation in the world for food inflation rate, according to the report.
Over the last 12 months, Canada reported an increase of 8.9 per cent, nearly 10 per cent less than the global average. The report shows an average increase of 21 per cent was seen over the last three years and a 25.1 per cent increase was reported in the last five years.
According to the report, grocery store items that saw the highest price increases were edible oils, excluding olive oil, which jumped 19.3 per cent in 12 months and more than 50 per cent in five years.
Pasta products also increased by 14.2 per cent in 12 months and 37.1 per cent in five years.
In comparison, products like bread, eggs, cheese and butter saw the highest increase globally, with Slovakia seeing the largest price increase on eggs in the last 12 months. Canada reported an increase of 11.8 per cent.
Meanwhile, the U.S. was ranked the nation with the lowest overall food price inflation with the country reporting an increase of 8.5 per cent in 12 months, 24.1 per cent in three years and 26.4 per cent in five years, according to the report.
---------
METHODOLOGY
Ubuy's report gathered data in April 2023 from countries in the European Union, U.K., as well as the U.S., Australia and Canada. The report included data on products considered essential in a typical household's grocery basket. Inflation in prices was calculated as a relative percentage difference between the average index value in 2023, compared to the average index value in the same period of 2022 (12-month inflation), 2019 (inflation since the pandemic), and 2018 (five year inflation). Annual index values were aggregated using the mean average of the respective price index values across a given year. For 2023, the average index value is based on price indices for the first 3 months of the year. To estimate which products went up in price the most, the average per cent increase in index value was taken across all the countries in the dataset.
YOUR FINANCES
opinion | Should you take advantage of the First Home Savings Account?
Personal finance contributor Christopher Liew explains how First Home Savings Accounts work, who’s eligible for the program, and outlines the contribution rules.
opinion | Find out how much contribution room is left in your RESP to avoid penalties
Opening a Registered Education Savings Plan (RESP) is a great way to fund your child’s future education. Personal finance contributor Christopher Liew outlines the contribution rules for RESPs and explains how to find out how much contribution room you have left so that you can avoid penalties.
opinion | Is it a good time to buy a new vehicle?
If you're like many would-be vehicle shoppers, you may be wondering when prices will finally drop. The good news is that the vehicle market seems to be finally stabilizing, says personal finance contributor Christopher Liew.
opinion | How to get the most out of your grocery rebate
Personal finance contributor Christoper Liew shares the latest information about who’s eligible for the grocery rebate, when they can expect their payments, and some helpful tips on making the most of your grocery rebate.
opinion | Dos and don'ts of money while travelling
As a former financial advisor, I’ve always been fascinated by how the 'culture' around money differs from one region of the world to another,' writes personal finance commentator Christopher Liew. 'Today, I’ll outline some of the interesting money habits that I’ve noticed while travelling the globe, starting with some of our own!'
opinion | How much of a raise should you ask for in a time of high inflation?
With the rising cost of food and living expenses, you might be considering asking for a raise. On CTVNews.ca, personal finance contributer Christopher Liew explains how inflation could determine the extent of your raise, as well as other key factors.
opinion | Top sources of passive income for Canadians looking to earn more
On CTVNews.ca, personal finance contributor Christopher Liew explores some of the top sources of passive income in Canada, for those looking to increase their earnings.
Owe money to the CRA? Here are some repayment options
Getting an income tax refund can be a happy bonus for your household budget, but an unexpected tax bill can be an unpleasant surprise, especially if you don't have the cash on hand to pay it.