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
Indian envoy warns of 'big red line,' days after charges laid in Nijjar case
India's envoy to Canada insists relations between the two countries are positive overall, despite what he describes as 'a lot of noise.'
Stormy Daniels describes meeting Trump during occasionally graphic testimony in hush money trial
With Donald Trump sitting just feet away, Stormy Daniels testified Tuesday at the former president's hush money trial about a sexual encounter the porn actor says they had in 2006 that resulted in her being paid to keep silent during the presidential race 10 years later.
U.S. paused bomb shipment to Israel to signal concerns over Rafah invasion, official says
The U.S. paused a shipment of bombs to Israel last week over concerns that Israel was approaching a decision on launching a full-scale assault on the southern Gaza city of Rafah against the wishes of the U.S.
Former homicide detective explains how police will investigate shooting outside Drake's Bridle Path mansion
Footage from dozens of security cameras in the area of Drake’s Bridle Path mansion could be the key to identifying the suspect responsible for shooting and seriously injuring a security guard outside the rapper’s sprawling home early Tuesday morning, a former Toronto homicide detective says.
Northern Ont. woman makes 'eggstraordinary' find
A chicken farmer near Mattawa made an 'eggstraordinary' find Friday morning when she discovered one of her hens laid an egg close to three times the size of an average large chicken egg.
Susan Buckner, who played spirited cheerleader Patty Simcox in 'Grease,' dead at 72
Susan Buckner, best known for playing peppy Rydell High School cheerleader Patty Simcox in the 1978 classic movie musical 'Grease,' has died. She was 72.
Jeremy Skibicki has 'uphill battle' to prove he's not criminally responsible in Winnipeg killings: legal analysts
Accused killer Jeremy Skibicki could have a challenging time convincing a judge that he is not criminally responsible for the deaths of four Indigenous women, a legal analyst says.
Bye-bye bag fee: Calgary repeals single-use bylaw
A Calgary bylaw requiring businesses to charge a minimum bag fee and only provide single-use items when requested has officially been tossed.
Alcohol believed to be a factor in boating incident after 2 men die: N.S. RCMP
Two Nova Scotia men are dead after a boat they were travelling in sank in the Annapolis River in Granville Centre, N.S., on Monday.