Industry Snapshot: Canada’s food industry in the last year

Toronto – March 10, 2018 – The latest Consumer Price Index (CPI) from Statistics Canada reveals minor price increases in 2017 for all food items as a result of sharp competition between Canada’s food retailers.

Other important facts about Canada's retail food industry:

• While the total inflation for all items increased by 1.6% in 2017, the prices for food purchased from stores decreased by 1%.

• Predictions for 2018 are calling for a modest food price increase across Canada, as the retailers’ competition remains fierce.

• The price of food in restaurants have risen. (+2.6%).

• Prices for fresh fruits (-3.1%) and fresh vegetables (-2%) fell in 2017, after increasing in 2016.

• Strong competition at store level translated into annual average price decline for staples such as eggs (-3.5%) and dairy products (-1%).

• Poultry prices went up by 1.5% while fish prices have increased by 3.5% in 2017.

• The demand for meat and poultry, in both Canada and the US, remains strong, despite higher and higher prices.

• Across the country, prices fell by half a percent in Quebec and by just over 1% in Ontario and Alberta.

• Food retailers registered a minor loss in gross margins during the month of November 2017, compared to 2016.

Sources: Kevin Grier – Grocery Trade Review – January 2017, www.kevingrier.com; Statistics Canada – The Daily – CPI Annual review, 2017