Grocery inflation in Canada has shown signs of slowing down, reaching its lowest level since February 2022. Despite this, the overall measure of price increases has accelerated.
In the 12 months leading up to July, grocery prices in stores rose by 8.5%, which is a slight decrease from the 9.1% rate seen in June. This is the lowest figure since February last year, showing a decline from the peak of 11.4% in January 2023.
Meanwhile, the consumer price index for all items rose by 3.3% on an annualized basis, showing an increase from 2.8% in June. On a monthly basis, it climbed 0.6% compared to the previous month’s 0.1% increase.
Statistics Canada attributes the easing off in grocery inflation to the price of fresh fruit, which increased by 4.1% in July compared to an annual rate of 10.4% in June. Bakery products also saw a decrease, rising by 9.8% in the 12 months through July, as opposed to a 12.9% increase in June.
Notably, fresh fruit prices saw a significant drop of 6.5% on a monthly basis, the largest decrease since February 2008. This was primarily driven by a 40.9% decline in grape prices and a 1.8% retreat in the cost of oranges.
A similar trend can be observed in the US, where food inflation eased in July. According to the Bureau of Labor Statistics, US food inflation, including in-home and out-of-home consumption, measured by the consumer price index series, stood at 4.9% in the 12 months through July, down from 5.7% in June and significantly lower than the peak of 11.4% in August last year.
Furthermore, prices for groceries intended for at-home consumption increased by 3.6% on an annualized basis, showing a decrease from June’s 4.5%. Meat, poultry, fish, and egg prices fell by 0.2%, continuing the downward trend from the previous month.
Meanwhile, the UK also reported its July figures, indicating that grocery inflation remains in double-digits, albeit with further easing from a peak of 19.2% in March.
Food and soft drink prices in the UK rose by 14.9% in the year through July, which is a decrease from June’s rate of 17.4% and May’s rate of 18.4%.