FORT McMURRAY — Fort McMurray-Cold Lake MP Laila Goodridge says rising food prices are putting increasing pressure on Canadian families as new international data shows Canada has the highest food inflation among G7 countries.
“Canadians are paying more at the checkout than families in any other G7 country,” Goodridge said. “Canada now has the highest food inflation in the G7, making it harder for families to afford the essentials.”
The latest figures from the Organisation for Economic Co-operation and Development show food prices in Canada rose 4.2 per cent year over year in June, the highest rate among G7 economies.
The increase comes despite an easing of inflation more broadly across much of the developed world.
Headline inflation across the G7 fell to three per cent in June from 3.5 per cent in May, while overall OECD inflation declined to 4.2 per cent from 4.6 per cent.
The OECD said food and energy prices combined were the primary drivers of Canada’s headline inflation, a contrast with countries including Germany, the United Kingdom and United States, where core inflation played a larger role.
Canadian grocery inflation has also been running ahead of overall inflation. June marked the 17th consecutive month in which grocery prices increased faster than the overall inflation rate, according to figures cited by the Conservative Party.
The higher cost of necessities is placing additional pressure on household budgets.
Recent polling cited by the party found 76 per cent of Canadians identified food and groceries as having the greatest impact on their household finances, while 47 per cent pointed to vehicle fuel and about one-third cited housing costs.
Households with children reported particularly strong financial pressures, with more than half saying they were spending more than a year earlier and 42 per cent reporting taking on debt to cover essential living expenses.
Other surveys cited in the release suggest Canadians are also cutting back on savings and becoming increasingly concerned about their ability to absorb unexpected expenses.
Goodridge blamed federal Liberal policies for contributing to the affordability pressures.
“After years of Liberal policies driving up the cost of living, Canadians deserve a government focused on making life more affordable, not more expensive,” she said.
The OECD figures show food inflation across its member countries averaged 3.4 per cent in June, down slightly from May.
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