Alberta, Canada (RFD News) — Canada’s inflation rate has climbed to 3.2%, its highest level in more than two years, raising concerns about input costs across agriculture.
RealAg Radio host Shaun Haney joined us on Monday’s Market Day Report to discuss what’s driving the increase.
In his interview with RFD News, Haney said higher energy prices were the biggest factor behind the jump, with gasoline prices rising more than 33 percent year over year amid concerns about global oil supplies.
He said those higher fuel costs can ripple through agriculture by increasing expenses for fertilizer and other farm inputs.
Haney also noted that while food inflation continues to outpace overall inflation, higher grocery prices don’t always translate into stronger returns for farmers.
He says producers should continue to monitor energy markets, as easing geopolitical tensions could eventually help lower costs.
