B.C. small businesses face cost challenges as national inflation rate hits 31-year high
The rising cost of food, shelter, and other expenses pushed Canada’s inflation rate to a 31-year high last month. People are paying a lot more for many basic needs than they were last year at this time, and small businesses are also struggling to manage higher prices for the goods they need to keep going.
At Gabi & Jules bakery and cafe in Port Moody, flour is a key ingredient for the baked goods made by hand on site. It’s also not the only recipe component that’s become more costly, according to co-owner Lisa Beecroft.
“The price increases across the board are a huge concern and struggle,” she said. “We’ve seen dairy go up by almost 15 per cent, flour’s almost doubled.”
Produce is also on that list of higher prices. Beecroft said she's seen the cost of goods her business relies on creep up over the past year, at a time when fuel surcharges and rent increases are also adding pressure.
“You just feel squeezed on all sides, so I think it’s just really challenging us to be as agile as we can,” she said. “If we can’t afford to sell certain things, we just can’t, because you can only increase your prices so much.”
In April, Canada’s inflation rate was 6.8 per cent, according to the latest Consumer Price Index from Statistics Canada: a 31-year high.
The price of food at grocery stores jumped 9.7 per cent over the same time last year, while the cost of fruit rose 10 per cent. The price of vegetables climbed 8.2 per cent, and meat prices increased 10.1 per cent compared to last April.
Statistics Canada economist Rebecca Lehto said there are multiple factors feeding in to higher food prices.
“We’re seeing pressure from unfavourable weather conditions in growing regions, as well Russia’s invasion of Ukraine is putting pressure on products that contain wheat,” she said. “We’re also seeing higher prices for inputs such as fertilizer and natural gas that’s putting pressure on food prices as well.”
The cost of bread jumped 12.2 per cent, the price of pasta rose 19.6 per cent, and rice increased by 7.4 per cent. A cup of coffee went up 13.7 per cent over last year.
Shelter costs also rose 7.4 per cent in April compared to last year, fuelled by higher prices for home heating methods, such as natural gas.
“In April, the average hourly wages for employees rose 3.3 per cent on a year over year basis,” Lehto said. “And so technically prices are rising faster than wages, and so Canadians are experiencing a decline in purchasing power.”
For small businesses like the bakery, Beecroft said carefully managing costs is critical.
“It’s tough as a small business, because oftentimes you’re pulled so thin or you’re actually out there serving customers or you’re making the product that you don’t have the time to be on top of those numbers,” she said. “But I think that now you don’t have a choice but to be, because it’s going to be kind of key to your survival.”
Beecroft said customers who are also seeing cost hikes at the grocery store are understanding of price increases, but added “everyone has a threshold." She is hoping people will continue to support local small businesses through yet another tough time.
“Everyone is feeling that pinch when they go to the grocery store too,” she said. “So (I'm) hoping that we’ll be able to ride out this inflation and start to see some relief.”
CTVNews.ca Top Stories
DEVELOPING Person on fire outside Trump's hush money trial rushed away on a stretcher
A person who was on fire in a park outside the New York courthouse where Donald Trump’s hush money trial is taking place has been rushed away on a stretcher.
Mandisa, Grammy award-winning 'American Idol' alum, dead at 47
Soulful gospel artist Mandisa, a Grammy-winning singer who got her start as a contestant on 'American Idol' in 2006, has died, according to a statement on her verified social media. She was 47.
She set out to find a husband in a year. Then she matched with a guy on a dating app on the other side of the world
Scottish comedian Samantha Hannah was working on a comedy show about finding a husband when Toby Hunter came into her life. What happened next surprised them both.
'It could be catastrophic': Woman says natural supplement contained hidden painkiller drug
A Manitoba woman thought she found a miracle natural supplement, but said a hidden ingredient wreaked havoc on her health.
Young people 'tortured' if stolen vehicle operations fail, Montreal police tell MPs
One day after a Montreal police officer fired gunshots at a suspect in a stolen vehicle, senior officers were telling parliamentarians that organized crime groups are recruiting people as young as 15 in the city to steal cars so that they can be shipped overseas.
Vicious attack on a dog ends with charges for northern Ont. suspect
Police in Sault Ste. Marie charged a 22-year-old man with animal cruelty following an attack on a dog Thursday morning.
Senators reject field trip to African Lion Safari amid elephant bill study
The Senate legal affairs committee has rejected a motion calling for members to take a $50,000 field trip to the African Lion Safari in southern Ontario to see the zoo's elephant exhibit.
Tropical fish stolen from Beachburg, Ont. restaurant found and returned
Ontario Provincial Police have landed a suspect following a fishy theft in Beachburg, Ont.
DEVELOPING G7 warns of new sanctions against Iran as world reacts to apparent Israeli drone attack
Group of Seven foreign ministers warned of new sanctions against Iran on Friday for its drone and missile attack on Israel, and urged both sides to avoid an escalation of the conflict.