Grocery bills could warn of a future recession
Canadian shoppers have pulled back on their grocery spending, and are now working harder to find more deals to save.
In the United States, Costco executives have noticed a change in consumer food habits, which, they say is an indicator of a looming recession.
As Mark Palmer loads his truck after a grocery run to Costco in Ottawa, he can’t help but think about his bill.
"We’re close to $500 a week for groceries for the four of us," Palmer said about his grocery bill. "Beef is very expensive right now and with twin boys, it’s not feasible for us so we’re eating more pork and more frozen meat products that are cheaper than fresh."
Compared with 2022, pork prices have declined, while chicken costs have remained flat. The cost of a strip loin steak has soared around 12 per cent.
"There is an increase on everything," said Ryan Murray, who was grocery shopping with his young son Bo. "It’s fruits and veggies for us, especially with the little one. He eats a ton of fruit and Costco is the best deal for fruits for us for the amount we’re eating. But fruit prices, veggie prices everywhere are insane right now."
Which is a contributing factor to why Canadians have decreased the amount of food they buy. Several retailers have also noted consumer spending on discretionary purchases has declined.
In America, Costco leaders have seen shoppers switching from pricey beef to cheaper meats, like pork, chicken and even some canned meats. Officials say it’s a historical trend common with previous recessions.
"Inflation has violently impacted consumers at the grocery store," says Sylvain Charlebois, food distribution and policy professor with Dalhousie University.
"In Canada, with food sales right now, I would say that would be a contributing factor if we were looking at a potential recession. But the GDP is up and my guess, right now, is that other sectors are doing well but food people are hedging, people are protecting themselves and their pocketbooks as much as possible when they go to the grocery store or at the restaurant when they order.
"They’re very careful with how they spend their money right now."
The Canadian economy grew by more than three per cent in the first quarter, a higher than expected outcome, but also raises the chance of another interest rate hike, as inflation has been slow to dip.
For consumers like Murray, he says all these factors will just make buying groceries more expensive.
"I feel like we’re in the beginning stages of a recession now to be honest," he says. "Ever since 2020 came around, everything has been up and down and everything will keep going up and down until eventually it levels out but who knows how long that will take."
CTVNews.ca Top Stories
BREAKING Monthly earnings rise, payroll employment falls: jobs report
The number of vacant jobs in Canada increased in February, while monthly payroll employment decreased in food services, manufacturing, and retail trade, among other sectors.
Doctors say capital gains tax changes will jeopardize their retirement. Is that true?
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Remains from a mother-daughter cold case were found nearly 24 years later, after a deathbed confession from the suspect
A West Virginia father is getting some sense of closure after authorities found the remains of his young daughter and her mother following a deathbed confession from the man believed to have fatally shot them nearly two decades ago.
Something in the water? Canadian family latest to spot elusive 'Loch Ness Monster'
For centuries, people have wondered what, if anything, might be lurking beneath the surface of Loch Ness in Scotland. When Canadian couple Parry Malm and Shannon Wiseman visited the Scottish highlands earlier this month with their two children, they didn’t expect to become part of the mystery.
What do weight loss drugs mean for a diet industry built on eating less and exercising more?
Recent injected drugs like Wegovy and its predecessor, the diabetes medication Ozempic, are reshaping the health and fitness industries.
2 military horses that broke free and ran loose across London are in serious condition
Two military horses that bolted and ran miles through the streets of London after being spooked by construction noise and tossing their riders were in a serious condition and required operations, a British government official said Thursday.
'It was instant karma': Viral video captures failed theft attempt in Nanaimo, B.C.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
Fair in Ontario, flurries in Labrador: Weather systems make for an erratic spring
It's no secret that spring can be a tumultuous time for Canadian weather, and as an unseasonably mild El Nino winter gives way to summer, there's bound to be a few swings in temperature that seem out of the ordinary. From Ontario to the Atlantic, though, this week is about to feel a little erratic.
He replaced Mickey Mantle. Now baseball's oldest living major leaguer is turning 100
The oldest living former major leaguer, Art Schallock turns 100 on Thursday and is being celebrated in the Bay Area and beyond as the milestone approaches.