Grocery Inflation in Canada at 9.1%

For June 2023, Stats Canada published that the CPI, aka Inflation, is 2.8%. That sounds like a good number, but we all know:

There are lies, damn lies and then there are statistics

Bastardization of a well known expression

The real areas to look at are:

• Grocery is at 9.1% year over year, for those who remember the rule of 72, that means groceries will double in price (at this rate) in 8 years.
• Restaurant purchases up 6.6%
• Food overall is at 8.3% year over year, if we check again “Food” will double in 9 years.

Thanks to Gasoline and transport declines, grocery prices are being masked in the overall “good news”

Unfortunately, the Bank of Canada has no real tools to control grocery prices. Interest rates are a macro tool, that can’t directly affect food prices.

Inflation Commentary

I haven’t been writing about this topic much lately. It is interesting to see these numbers return, but it continues to worry me for the generations behind me.

Previous Rants About Inflation

• In 2022 Inflation at 7.7% May 2022 in Canada was near the high point of things.
• Inflation at 6.7% March 2022 in Canada goodness that was a bit of a jump?
• Inflation 4.4% September 2021 shows that this started a while ago.
• Looks like COVID leads to Inflation in August 2021 ?
• I talked about this in April of 2021, didn’t think it was going to get this bad, this fast.
• Inflation at 2011 levels ? OK, so I have even written this title before? Yes, I need more imagination.
• Bank in 2017 Inflation Still Under 2 Pct (for now) so things were OK back then too.
  • Low CPI Means No More Interest Hikes ?
  • Gasoline Pushed Inflation to 2.1 %
  • Energy Up 4.0 % for 2016
• Previously I have written a lot about inflation, here is a small taste. Note the snappy titles.
  • The year was 2016
    • Shocking Electricity Price in August (CPI Canada)
    • Electricity Prices Continue to Sizzle in July
    • Zap! Electricity Prices Pushes Inflation in June
    • Expensive Food and Shelter in April in Canada
    • Good Food Still Is Not Cheap in Canada (Inflation for March)
    • Food Prices Continue to Rise for February
    • Veggies up 18.2 pct in Canada 
  • Now for 2015
    • Food Prices up 4.1% For 2015 in Canada
    • Gas Prices Drive Down Inflation in December to 1.5%
    • Lower Prices in January in Canada, Pull the Other Leg
    • Expensive Food in Canada in March
    • Prices up 0.8% in April or More Fun with Numbers
    • Inflation at 0.9% for May (maybe)

And that is just scratching the surface.