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 Quebec judge orders bus driver to stand trial for 2023 daycare crash deaths
A judge has ordered a Quebec man to stand trial on charges of first-degree murder in the deaths of two children killed when a bus rammed into a Montreal-area daycare last year.
Sunshine list: These were the Ontario public sector's highest earners in 2023
Ontario released its annual sunshine list Thursday afternoon, noting that the largest year-over-year increases were in hospitals, municipalities, and post-secondary sectors.
Multiple bridges in Calgary shut down for police incident
Calgary police have shut down a number of bridges into and out of the downtown core as officers deal with a distraught individual.
Trudeau's latest pre-budget pledge targets millennial moms, vowing $1B in loans for more child-care spaces
The federal government is launching a new loan program to help child-care providers in Canada expand their spaces, and will be extending further student loan forgiveness and training options for early childhood educators, Prime Minister Justin Trudeau announced Thursday.
Why some Christians are angry about Trump's 'God Bless the USA' Bible
Former U.S. President Donald Trump is officially selling a copy of the Bible themed to Lee Greenwood’s famous song, 'God Bless the USA.' But the concept of a Bible covered in the American flag has raised concern among religious circles.
Krispy Kreme doughnuts coming to McDonald's in U.S., but not Canada
Canadians will be missing out on a sweet new partnership between McDonald's and Krispy Kreme, which will see doughnuts available at McDonald's locations across the U.S. by the end of 2026.
Calgary officer charged after allegedly assaulting handcuffed man
A Calgary police officer has been charged after allegedly assaulting a handcuffed man two years ago.
Where is the worst place for allergy sufferers in Canada?
The spring allergy season has started early in many parts of Canada, with high levels of pollen in some cities already. Experts weigh in on which areas have it worse so far this season.
How do you navigate the social media minefield with your kids?
Growing fears about social media's harm have sparked lawsuits against social media companies from hundreds of school districts in the United States and now Canada. CTVNews.ca wants to know whether your children are addicted to social media or if you have concerns about their usage of platforms such as Facebook, Snapchat, TikTok and X.