Inflation and the price of food continue to take different paths. If the rise in prices in general slowed down in January compared to December, it is the opposite at the grocery store, where we get even less for our money.
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Inflation was 5.9% in January in Canada, CPI data released Tuesday by Statistics Canada showed, up from 6.3% in December. The price of food, for its part, jumped 11.4% at the grocery store, against 11% in December.
It has now been 14 consecutive months that the price of food has increased faster than anything else. The last time the food inflation rate was lower than the inflation rate was in November 2021.
“The economy is going one way while grocery prices are going the other. That’s what is worrying, ”summarizes Sylvain Charlebois, specialist in food issues.
January was the month for bakery products (+15.5%), dairy products (+12.4%) and fresh vegetables (+14.7%), three categories where price increases accelerated .
And it will be worse in February, at least for dairy products, because the rise in the 1is February is not yet calculated.
“Tie your pants!” Illustrates Mr. Charlebois.
The rent of money too
Interest rate hikes are the other major factor fueling inflation.
The cost of mortgages increased by 21.2% in Canada between January 2022 and January 2023 (18% in December).
A certain trend
This is the third month in a row where we are witnessing a slowdown in the rise in prices.
Inflation went from 7% in August, to 6.9% in September as well as in October, to 6.8% in November, to 6.3% in December and now to 5.9% in January.