Economists say there are a number of factors driving up food prices, but they expect food inflation to slow over time. Here's a look at what’s behind Canada’s high grocery prices and what to expect in the coming months.

TLDR; climate change, Russia, supply chain not recovered, labor shortages; more price increases expected :/

  • psvrh@lemmy.ca
    11·
    1 year ago

    Your price might go down, but that’s because you have the least amount of leverage. Same applies to customers, and to any smaller entity in the supply chain.

    I’d also note the LCL, Empire and Metro didn’t hesitate to push on supplier increases, but also didn’t hesitate to raise resale at the same time. Most of them are seeing increased margins and they’re all seeing higher profit, which, if we had a fair tax structure, wouldn’t happen.

    I work in distribution. Other than select contract negotiations at very high volumes, I can’t think of the last time I saw a price decrease go through, though I will say our fuel surcharge at least isn’t going up. So the rate of increase is slowing, but resale prices, by and large, are not going down. At best, this is the “new normal”

    • EhForumUser@lemmy.ca
      2·
      1 year ago

      I can’t think of the last time I saw a price decrease go through

      Somewhere in the mid-2010s, I’d imagine. Prices have been relatively stable or increasing since, save recently. It’s still a little early for the rest of the chain to start to feel it, but it will come. It always does.

      In fact, with respect to the economy at large, only once in history has a period of high inflation not been quickly followed by deflation – and that period was unique in that, unlike the usual supply shocks, the driving force – a sudden, sharp rise in the number of consumers (i.e. the boomers coming onto the scene) – never really went away.

      It all takes time, though. Nothing happens in a day.