Food prices continue rising

 

 

Despite a decline in the consumer price index, food prices continued to rise in November.

Statistics Canada reported the overall inflation rate dropped to 1.9 per cent, but food prices rose by 2.6 per cent.

Compared with November, 2021, grocery prices rose 19.6 per cent.

Dairy prices will continue to rise.

The Canadian Dairy Commission said the price for milk that’s used to make dairy products such as butter and cheese will increase by 2.2 per cent on Feb. 1.

Prices for milk that consumers drink are set under provincial jurisdiction.

The Canadian Dairy Commission said the index used to determine prices takes into account dairy farmers’ costs of production as well as the consumer price index.

“In the last year, producers faced increases in feed costs, fertilizer costs, fuel costs, and interest rates. Disruptions to supply chains continue to put upward pressure on input costs. However, investment and productivity gains at the farm offset some of these increases,” it said.

That doesn't seem right to me. I figure feed is one of the main costs of production and grain prices are significantly lower now than a year ago.