Good News for 2012: Food price increases to ease!

Let me try and blend both the good news and bad news together: while¬† Canadian (and North American in general) food prices will continue to go up in 2012, the increases won’t be as large as the ones we saw in 2011. According to an article in the Toronto Star:

University of Guelph economists predict that while food prices will continue to inch ahead, the rise will be modest compared with the spike in prices in 2011

Compared to the average 4.9% increase we saw this year, 2012 will see an increase that is less than half of that; just about 2%!

Meat products will see a 3% increase compared to the 5% we saw in 2011. As for fresh vegetables, you will be relieved to learn that the increase will average about 1-3% compared to the dramatic-up to 10%-increases that we saw in 2011.

Thanks to various factors-weather, increased world demand, higher energy prices-food prices have been going up every year for the last 10 years. 2012 may be the first year in a long time where consumers will see less pressure. But like I mentioned earlier, let us not fooled by this: there will still be an increase, not a reduction in prices, albeit a smaller one than we have been seeing last few years and this year (2011). Some necessary items, though, will see a price decrease actually, notably core grains and sugar.

This is a much welcome news for families and individuals, especially those who have been struggling to make ends-meet or having trouble paying down debt.