One analyst is concerned the “era of cheap food” could be ending

Food price inflation has been an area of concern for both U.S. and Canadian producers for a while now. Staples like meat, dairy, and groceries have increased significantly this year.

Since lockdowns last year, people have been cooking at home more and experimenting with new ingredients.

Cuts of meat are a popular menu item at restaurants, but the shift to dining at home could leave livestock producers in a tough spot.

One analyst wonders if the “era of cheap food” could be ending.

“I actually do think that we’re slowly departing an ‘era of cheap food. Instead of seeing households spend say 9 or 10 percent of their budget in Canada-- in the U.S. it’s actually much lower than that, but in Canada it’s about 9-10 percent-- you could see that percentage go to 12, 13, even 14 percent in a few years from now,” Dr. Sylvian Charlebois states.

Meat is what has been hitting grocery budgets hardest over the last six months.


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In 2021, Canadians will be paying more at the grocery store

Food prices jumped 3.5% this year compared to the normal pace of 2%

Food prices increasing but not as fast as other items in the economy