Food prices in Canada are soaring; at a two-year high

 

 

The latest figures released by Statistics Canada show that food prices in Canada have reached their highest level in the past two years. As of December, the country's inflation rate rose to 2.4 percent. The end of the Tax Holiday announced by the federal government is being cited as the main reason for the sharp increase in prices.

This is higher than the 2.2 percent expected by economists. With this, Canada has topped the G7 countries in food inflation. Reports indicate that the price of food items from stores has increased significantly, mainly for meat, fish and vegetables. While the price of coffee increased by more than 30 percent in December, the price of beef increased by 16.8 percent. The price of food in restaurants has also increased by 8.5 percent. Experts believe that the withdrawal of tax breaks and changes in contracts between suppliers and retailers are also causing large price fluctuations in the market.