Canada’s inflation rate decelerated to 3.4 per cent in the year up to May, Statistics Canada said Tuesday, led by sharply lower gasoline prices. But beneath the headline slowdown in consumer prices, many facets of the cost of living are still increasing at an eye-watering pace. Grocery prices went up at an almost nine per cent pace.

  •  grte   ( @grte@lemmy.ca ) 
    11•1 year ago

    Grocery prices went up at an almost nine per cent pace. That’s barely lower than the 9.1 per cent pace clocked in April, and still almost three times the inflation rate.

    Food prices have been increasing at a faster pace than the official inflation rate for more than a year now.

    Despite gasoline prices dropping enough to drop the overall inflation rate by a full percentage point? Surely transport costs must have gone down significantly. What ever could be going on, here?

    •  zedtronic   ( @zedtronic@kbin.social ) 
      5•1 year ago

      Although a little outdated being from Nov 2022, Statistics Canada has a great breakdown of what contributes to the rising costs of food beyond transportation costs.

      I’m not saying corporate profit-taking isn’t affecting prices or that we shouldn’t do anything about it, just that there’s a lot going on here. Last time I looked Loblaw’s profit margin had increased from 2% to 3% from 2020-2023. A 50% increase is a lot and I think they’re scum for doing that, but it doesn’t explain the overall ~30% increase in food prices.