Food prices to go up as a result of weak Canadian dollar

Food economist, Mike von Massow from the University of Guelph, says that trips to the grocery store could become more painful for Canadians due to the low Canadian dollar. Von Massow: “Those things that we get fresh in the winter from the US […] were going to be more expensive anyway, and so this just bumps it more. So, we’ve seen quite high levels of food inflation in the last year, and I think for those products, that inflation will continue.”

The Canadian dollar fell more a few days ago when the Bank of Canada didn’t raise interest rates as much as expected, but it did finish in the green by the end of the week.

“The products in the grocery store that will be most affected will be fresh fruits and vegetables as they start coming out of the US. Particularly because they’re coming from the US because our dollar is relative to the US dollar,” von Massow added.

On Wednesday, the Bank of Canada increased its key interest rate for the sixth consecutive time this year, now at 3.75 percent, marking one of the fastest monetary policy-tightening cycles in its history.

Source: vancouver.citynews.ca

Photo source: Dreamstime.com


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