Canadian families can expect to pay an additional $487 for groceries next year due to rising prices.
The estimate comes from Canada’s Food Price Report, which was published in collaboration with Dalhousie University and the University of Guelph.
Meat, vegetables, fruits and seafood will all be affected by a price increase. The study expects an anticipated change of 4% to 6% more for the price of meat in 2020.
“The 2020 forecast suggests overall food prices will increase 2 to 4%. It also predicts that annual food expenditure for the average Canadian family will rise by $487 from 2019 figures. Annually, this represents a total forecasted household expenditure on food of $12,667,” writes the study’s authors.
The study points to several factors contributing to the price increase, including the ongoing trade war with China, uncertainty around the new NAFTA agreement and climate change.
The report singles out several environmental factors that will increase food prices in Canadian grocery stores. This includes environmental activism around single-use plastics.
Several grocery stores, including Sobeys, have banned plastic bags, while others such as Loblaws, Walmart and Metro have all reduced the use of plastic.
This increase might put many families over the edge, considering a recent report by the Office of the Superintendent of Bankruptcy which showed that October saw a 13.4% increase in insolvencies across the country. This makes it the highest level of personal insolvency in Canada since the 2008 financial crisis.
Another Ipsos survey conducted earlier this year found that nearly half of all Canadians believed that they were $200 or less away from financial insolvency.