The rate of food price increases is forecast to be 2.5 to 4.5 per cent next year, according to a report compiled by the Universities of Guelph, Saskatchewan, Alberta and Dalhousie in Halifax.
Last year started with prices 10 per cent higher than the same month a year earlier and then declined to 5.6 per cent by October.
The forecasting team, led by Sylvain Charlebois, said there might even be some price declines next year and mentioned coffee and flour.
Whether a decline in grain prices will also lead to declines for breakfast cereals and baked goods such as bread remains open to question.
Those commodities are processed by a few dominant companies such as Kellogg’s, General Mills and Bimbo Bakery.
Food price inflation will add about $700 to grocery bills for a family of four, the report said.
Charlebois said he expects supermarket chains will step up their competitive pricing and there might even be price wars.
The team included a range of factors to arrive at its forecast, including the impact of El Nino on weather and snow pack.
