Canadian food prices will soar

While deflation continues to reign among grocery retailers in the U.S., it’s a different story in Canada where Canadians will pay more to put food on their tables in 2017, according to “Canada's Food Price Report 2017.”

The report forecasts a rise in food prices between 3 percent and 5 percent higher than last year's increase and considerably higher than the general inflation rate. For the average Canadian family, food expenses in 2017 could increase by as much as $420.

"Food prices are top of mind for everyone. Every single day we have to feed ourselves and we're victims of fluctuating food prices," said Sylvain Charlebois, lead author of the report and dean of the faculty of management at Dalhousie University.

Charlebois said a number of factors contributing to the price increase.

“The biggest factor will be the falling Canadian dollar,” he added. “Given how many food products we import from abroad, our food economy is vulnerable to currency fluctuations. We're also expecting the upcoming Trump administration to have an impact on Canada's food prices.”

Charlebois said the new administration could create a period of U.S. protectionism aimed at improving domestic issues at the expense of the international community, impacting agri-food and seafood exports.

Vegetables, fruits and nuts are expected to experience a sharp price rise in 2017, due to the need for imports. Vegetables are expected to increase by 4 percent to 6 percent and fruit and nuts by 3 percent to 5 percent. Pork, fish and seafood are also expected to see increases.

"Canada's Food Price Report 2017" also looked at potential food trends for 2017.

“We’ll continue to see public outcry for safe and all natural foods,” Charlebois said. “Food fraud awareness with consumers will continue and that will be a continuing challenge for industry and regulators alike.”