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Posthaste: Canadians are planning to fight back against higher grocery prices in 2024 Back to video

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Canadians who spent the past year watching their grocery bills climb ever higher appear to be resigned to even more pain ahead in 2024, but they’re also planning to fight back.

Just over 80 per cent of Canadians think food prices will continue to rise next year, according to a new report from the Agri-Food Analytics Lab at Dalhousie University, in partnership with Caddle. Many expect staple items to be hit hard, with almost three-quarters predicting meat prices will soar, while 62.2 per cent think they’ll be paying more for fruits and vegetables. Another 42.1 per cent believe prices of dairy products, such as milk, cheese and butter, will spike.

But just because people expect higher prices doesn’t mean they aren’t plotting ways to save money. Many are planning to transform how they shop and eat to find some much-needed relief on their grocery bills.

“Canadians are adapting in diverse ways to manage their food expenses,” Sylvain Charlebois, director of the Agri-Food Analytics Lab, said in a release. “This change is more than just economic; it’s a cultural shift in how we approach our food choices and consumption patterns.”

For example, one way people are planning to cope is by shopping sales, and more than 40 per cent say they’ll put more focus on promotions in the new year. Another 34.6 per cent plan to use coupons to control costs, while 33.6 per cent say they’ll make more use of loyalty programs, some of which allow customers to exchange points for discounts on grocery bills.

One-third of Canadians also aren’t opposed to switching food stores if it means finding a better deal, the survey said. But they also appear to need a good reason to shop somewhere new, and will only do so if they can be wooed by lower prices, better grocery quality or location.

At the same time, many plan to save money by cutting down on food waste, either through meal planning, using up leftovers, stocking freezers or even canning food. That could translate into substantial savings; thrown-out food costs the average household $1,300 a year, according to National Youth Council estimates. In all, $20-billion worth of food, or 2.3 million tonnes, gets trashed across Canada every year.

People are also experiencing sticker shock when dining out, and some intend to cut back on restaurant trips. Almost 40 per cent say they’ll eat out less next year and 12.2 per cent plan to quit restaurants completely. Of those who do go out to eat, 39.4 per cent say they’ll make sure cheaper options are on the menu.

Food inflation has slowed in recent months. In November, grocery prices increased by 4.7 per cent, Statistics Canada said on Dec. 19. That’s slower than in October, when food prices rose 5.4 per cent, and much cooler than the peak of 11.4 per cent in September 2022. Still, prices of some products rose more on a yearly basis in November than they did in October, including meat, up five per cent, preserved vegetables, up 5.8 per cent, and sugar and confectionary items, up 8.3 per cent.

Of course, slower price increases don’t necessarily translate into lower food bills. “Food is significantly more expensive than it was a year or two ago,” Michael Von Massow, a professor of food economics at the University of Guelph, recently told the Financial Post’s Larysa Harapyn. “Even in the absence of price increases, we know that people are still feeling the pinch.”

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The grocery prices increased by 4.7 per cent surprising economists and giving the Bank of Canada another reason to keep interest rates on hold.

The consumer price index rose by 3.1 per cent in November from a year ago, matching the increase a month earlier, Statistics Canada reported Dec. 19. That’s faster than the median estimate of 2.9 per cent in a Bloomberg survey of economists.

On a monthly basis, the index rose 0.1 per cent, versus expectations for a decrease of 0.1 per cent.

Mortgage interest costs remain the largest upside contributor to the consumer price index, with the inflation rate excluding those costs sitting at 2.2 per cent in November. Excluding shelter costs entirely, that figure is 1.9 per cent.

• The Bank of Canada releases its summary of deliberations for its Dec. 6 interest rate decision.
• Today’s data: U.S. current account, existing home sales, Conference Board consumer confidence index
• Earnings: BlackBerry Ltd., General Mills Inc.

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Today’s Posthaste was written by Victoria Wells, with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.

Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at posthaste@postmedia.com.

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