It might be time to consider going vegetarian, based purely on economic reasons.
Statistics Canada said Friday the average retail price for a standard cut of red meat was far above year-ago levels in September, continuing a trend of skyhigh protein costs this year as supply issues hit beef and pork production.
Even chicken, which was little changed for most of 2014, started to feel the heat of higher pricing pressure last month.
MORE: Here’s why red meat prices are through the roof
On average, meat at the supermarket has risen 11.5 per cent in price over last fall, StatsCan said, a spike that’s playing a leading role in driving “core” inflation of consumer prices upward this year.
“Some of the underlying strength in core inflation is due to persistently strong meat prices,” Doug Porter, chief economist at Bank of Montreal said.
Some cuts surged in September compared to a year ago, StatsCan data showed. Stewing beef is up 30 per cent, while sirloin steaks have risen by a fifth at the checkout.
A 500-gram pack of bacon is now running more than 23 per cent higher in cost at the grocery store, while customers grumble over packages that appear to have shrunk in size in recent months to mask the underlying price pressure.
Cornflakes and toast
While retail prices for fruits and vegetable increased in September year-over-year, the advances were far more tame.
Prices for in-season apples were up just 1.3 per cent, or seven tenths of a percentage point below headline consumer price inflation. Carrots rose by 6.5 per cent while celery (-3.5), grapefruits (-1.3) and potatoes (-3.4) actually declined.
StatsCan tracks a basket of 56 food and personal care items to monitor supermarket prices.
Grain-based foods like bread as well as dry goods found in the centre aisles of the supermarket are also seeing downward pressure as wholesale prices for their underlying commodities come down.
Big food retailers like Loblaw, Safeway and Metro are also competing fiercly this year as players like U.S. discount chains Walmart and Target step up efforts to win a greater share of consumers’ grocery budgets.
MORE: Walmart Canada turns focus to grinding down grocery prices
The cost of a 675g box of cornflakes is roughly 1.4 per cent lower on average, StatsCan said, a similar decline to bread. Canned soup on average is down a marked 6.8 per cent.
Paper towels and deodorant are also lower, StatsCan said.
“There’s a lot of growth in supermarkets,” David Cheesewright, head of Walmart’s international unit, said about the Canadian chain earlier this week. “It’s really important we win there.”
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