B.C. produce prices could rise despite falling inflation

The Canadian inflation rate for September slowed but the prices of some grocery items could rise further due to outside factors

According to numbers released by Statistics Canada on Tuesday, inflation dropped to 3.8 per cent after reaching four per cent in August.

The federal agency says grocery prices continue to rise, but the pace of growth fell to 5.8 per cent in September, down from 6.9 per cent in August.

“We’re expecting a much smoother market in the fall. So we’re expecting softer numbers,” said Dr. Sylvain Charlebois, the senior director of the Agri-Food lab.

“We should be finishing the year at five per cent.”

He says the lab's forecast for next year is already showing signs of improvement compared to last year when food inflation was expected to rise to seven per cent.

In British Columbia, Charlebois believes due to several weather factors, grocery stores may have to depend on importing produce from outside of the country.

“Mostly tomatoes, cucumbers, those types of products that I think are popular would depend on imports,” said Charlebois.

“Year to year you’re expecting a bump of four to five percent.”

Charlebois went on to say that in B.C., produce is usually imported from the produce market relies on trade partners in California but both places have been impacted by unfavourable weather.

He is expecting B.C. importers will have to look to trade with Mexico and Arizona.

The Bank of Canada's next interest rate announcement is on Oct. 25.