Companies like Maple Leaf Foods are already raising prices due to factors such as global supply problems, demand from the growing middle class in China and India and the rising cost of fuel.
According to The Globe report, economists predict overall prices will rise by three to eight per cent by year’s end. “For the most part, food costs are rising faster than many other products,” Sal Guatieri, senior economist with BMO Capital Markets, is quoted as saying in The Globe. “We do anticipate food cost will continue to rise.”
That being said, Canada is still in a much better position than places like North Africa and the Middle East where the cost of food is causing unrest.
For the complete Globe report, click here.