Grocery Inflation Predicted to Fall Below Two Per Cent by Spring

Grocery inflation will fall below two per cent by the spring and stay roughly between one and two per cent for the rest of 2024, predicts a new report on the food and beverage industry.

"However, population growth and stabilizing — in some cases, falling — input costs are providing optimism for margin improvement for 2024."The organization’s annual food and beverage report offers up forecasts for consumer spending, as well as specific food items such as sugar and flour. As they grapple with higher prices, not just on food but on shelter and other daily costs, Canadians have been trying to cut back their spending on food and beverages, FCC said. They have been buying more items on sale, gravitating toward less expensive brands, buying more canned and frozen foods, shopping more at discount retailers and simply buying less food.

The report said some food products are expected to go down in price this year, such as flour, after a sharp increase over the last couple of years. This will translate to lower bakery and tortilla manufacturing selling prices by the end of the year. "Still, demand should remain relatively robust as research has shown consumers tend to treat themselves to smaller and lower-cost indulgences during difficult economic times," the report said.Many of the inputs that have been driving up costs at the manufacturing level, like fuel, transportation and packaging costs, have seen prices increase slower or even decrease, the report said.

-- Copper’s rally stalled after US inflation numbers came in slightly above expectations and caused futures of the wiring metal to retreat from highs not seen since January 2023.

Grocery Inflation Food And Beverage Industry Report Predictions Consumer Spending Food Prices Pre-Pandemic Levels

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