Produce prices went up by around 10 per cent last year and may double inflation in 2016
Food and vegetable prices are on the rise because virtually all the produce consumed in Canada comes from the U.S. where the greenback is soaring. (Lynne Sladky/Associated Press)
The dropping dollar, which is hovering just above the 70-cent U.S. mark, is expected to continue to leave shoppers with bigger grocery bills, especially when it comes to buying fresh fruit and vegetables.
Nearly all fruit and vegetables consumed in Canada are imported, making them more susceptible to the loonie’s fluctuations.
“It really boils down to the dollar,” said Kevin Grier, an agriculture and food market analyst.
Last year, fruits and veggies jumped in price between 9.1 and 10.1 per cent, according to an annual report by the Food Institute at the University of Guelph. The study predicts these foods will continue to increase above inflation this year, by up to 4.5 per cent for some items.
Sylvain Charlebois, the report’s lead author, said for every U.S. cent the dollar drops, foods that are imported likely increase one per cent or more.
These prices have been on the rise for years.
1 cent = 1% increase
In November 2011, one kilogram of apples cost an average of $3.35 in Canada, according to Statistics Canada. Four years later, the same amount cost $4.12.
One kilogram of celery, meanwhile, increased from $2.23 to $3.08 over the same time frame.
While the increased costs have dealt a blow to everyone’s wallet, they have a more pronounced effect on Canadians living on a tight budget or in remote regions, where fresh fruit and vegetables is more expensive than in more urban areas.
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