Inflation calms, grocery prices reach levels not seen since 1981 – Winnipeg IG News

Irshadgul News report,

According to a recent report, although inflation may be calming down, grocery prices are still climbing.

Canada’s food inflation rate has been around ten percent since May this year and prices at grocery stores continue to rise, a rate not seen since 1981.

According to experts, there are several reasons including the cost of goods and transportation mixed with the declining Canadian dollar.

“We need to start mentally preparing ourselves for some higher food prices in the coming year,” said University of Saskatchewan professor Stuart Smith.

“The uncertainty of the situation in Ukraine is affecting our markets,” he said.

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Click to play video: 'Inflation cools, grocery prices hit levels not seen since 1981'

Inflation calms, grocery prices reach levels not seen since 1981

Inflation calms, grocery prices reach levels not seen since 1981
The Dalhousie University report says that Canadians are rapidly changing their habits to deal with it.

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According to Sylvain Charlebois of Dalhousie University, the numbers relate to the well-being of people, especially women.

“Twenty-four percent of Canadians are actually buying less food. And of that number, around 70 per cent are women,” he said.

A total of 5,000 Canadians were consulted between September 8 and September 10 for this cross-national survey.

While a total of 18.1 percent of Canadians are focusing more on their health and nutrition, 12.4 percent claimed they left in the last year alone. A total of 12.0 percent of Canadians have changed jobs and 9.3 percent have started exercising. A total of 7.1 percent of Canadians also became new pet owners.

The survey also looked at newly-adopted shopping habits. While 8.0 percent of Canadians changed their primary grocery store where they buy most of their food, 12.9 percent of Canadians have started visiting more than one store in the past 12 months.

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According to the survey, people have also started using things like loyalty points, coupons and flyers to save money.

Global News asked some Winnipegers outside a grocery store what they are doing to prevent food prices stinging.

Click to play video: 'Winnipeg shoppers react to soaring food costs'

Winnipeg shoppers react to climbing food costs

Winnipeg shoppers react to climbing food costs

“It appears that Canadians are constantly looking for different ways to save at the grocery store,” Charlebois said.

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“Options always existed, but inflation made many options like loyalty programs and coupons more attractive,”

In addition to the savings so far, people are also investing in kitchens and food items that help them cook better meals at home instead of ordering takeout.

“So a lot of people have actually renovated their kitchens and seven percent of the kids actually bought a deep freezer for the first time.” They said.

“So you can see that actually the market is becoming more domesticated and the intention is to save more money.” Charlebois added.

Additionally, a new survey from the National Payroll Institute shows that more and more Canadians live up to checks while practicing bad financial habits.

The Fourteenth Annual Study found that ten percent of fewer Canadians consider their financial situation “comfortable,” while eleven percent are spending more than they currently do.

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According to the institute, most people are not familiar with going through such a difficult time.

“We are really used to the low interest rate regime and inflation has been kept under control, so this is really new territory for them,” said Peter Tzanetakis of the institute.

The survey also found that nine percent of Canadians are not saving any money, while 34 percent save only one to five percent of their salary.

— With files from Global News Skylar Peters and Michelle Karelzing

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