Article Share: Food prices are dropping, but no one cares

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Statistics Canada reported this week that food inflation in April stood at 1.4%, indicating that food prices in stores are 1.4% higher than they were a year ago. However, Statistics Canada also confirmed a trend our lab has been tracking for some time: food prices in April declined by 0.3%. Indeed, they dropped. Looking ahead, we might witness another negative figure from Statistics Canada for May.

Remarkably, food inflation in Canada decreased for the fourth consecutive month in April, falling to 2.3% from 3% in March. Food purchased from stores experienced a year-over-year increase of 1.4%, the lowest since July 2021. This marks the first instance since November 2021 where food inflation (2.3%) has fallen below the general inflation rate (2.7%). This is undoubtedly positive news, especially given the challenging years we have endured. Lower prices are what many Canadians have been yearning for. Yet, the reactions and comments about the inflation data suggest that few have recognized that Statistics Canada essentially announced a major shift in food pricing.

Not a single media outlet reported on this development. This omission is quite revealing, suggesting a pervasive preoccupation with highlighting negative news in the data. The data released this week was certainly reassuring for the outlook for the rest of the year. Nevertheless, it appears no one paid heed, not one bit.

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