Inflation On Food Prices Is Driving People To Dollar Stores
HALIFAX – With inflation, people are heading to the dollar store to fill up their grocery carts.
Food Professor Sylvain Charlebois, the senior director of the Agri-Food Analytics Lab at Dalhousie University, says discount stores offset high grocery prices.
He calls it “trading down.”
“A recent report from NielsenIQ suggests food sales at dollar stores are up 17 percent since March,” says Charlebois. “You can see that people are changing address. They’re looking at deals much more aggressively.”
Charlebois adds we’re also trading down in terms of brands with private labels gaining popularity. He believes if you want to dodge the food inflation bullet, that’s not a bad thing to do.
He also says restaurant bills are not rising as fast as grocery orders.
Over the last six months, Charlebois says menu prices have climbed at a slower pace than food at grocery stores.
“There’s more competition and restauranteurs want our business back as much as possible,” he says. “So, there is that fight going on in favour of consumers.”
Charlebois believes there may also be “a light at the end of the food inflation tunnel.” He says the latest stats show the food inflation rate has peaked in Canada.
Statistics Canada reported last week the country’s annual inflation rate climbed to 8.1 percent in June. The cost of food is up 8.8 percent compared with a year ago. The food inflation rate might be outpacing the general rate, but it’s not as much of a climb as reported in April and May.
Charlebois says that means the food industry has likely caught up with supply chain issues. Generally speaking, he believes the situation is under control, with the exception of dairy.
The food professor says people can expect to see better deals in grocery stores.
“It doesn’t mean that food prices are dropping any time soon, it’s just things are much more under control,” Charlebois explains. “You may see more promotions. If you go to discount grocery stores you’ll actually see a difference in terms of prices.”
Skye Bryden-Blom is a reporter with CKHZ 103.5 in Halifax, a Huddle content partner.