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
Half of Canadians have negative opinion of latest Liberal budget: poll
A new poll suggests the Liberals have not won over voters with their latest budget, though there is broad support for their plan to build millions of homes.
Twins from Toronto were Canada's top two female finishers at this year's Boston Marathon
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
opinion Why you should protect your investments by naming a trusted contact person
Appointing a trusted person to help with financial obligations can give you peace of mind. In his personal finance column for CTVNews.ca, Christopher Liew outlines the key benefits of naming a confidant to take over your financial responsibilities, if the need ever arises.
Ottawa injects another $36M into vaccine injury compensation fund
The federal government has added $36.4 million to a program designed to support people who have been seriously injured or killed by vaccines since the end of 2020.
Senate expenses climbed to $7.2 million in 2023, up nearly 30%
Senators in Canada claimed $7.2 million in expenses in 2023, a nearly 30 per cent increase over the previous year.
'My stomach dropped': Winnipeg man speaks out after being criminally harassed following single online date
A Winnipeg man said a single date gone wrong led to years of criminal harassment, false arrests, stress and depression.
Photographer alleges he was forced to watch Megan Thee Stallion have sex and was unfairly fired
A photographer who worked for Megan Thee Stallion said in a lawsuit filed Tuesday that he was forced to watch her have sex, was unfairly fired soon after and was abused as her employee.
NASA hears from Voyager 1, the most distant spacecraft from Earth, after months of quiet
NASA has finally heard back from Voyager 1 again in a way that makes sense. The most distant spacecraft from Earth hadn't sent home any understandable data since last November.
Australian police arrest 7 alleged teen extremists linked to stabbing of a bishop in a Sydney church
Australian police arrested seven teenagers accused of following a violent extremist ideology in raids across Sydney on Wednesday, as a judge extended a ban on social media platform X sharing video of a knife attack on a bishop that started the criminal investigation.