![“We believe [supermarket] inflation has probably peaked,” Eric La Flèche, chief executive of Metro Inc., said on a conference call on Wednesday.](https://globalnews.ca/wp-content/uploads/2015/04/metro-stores.jpg?quality=85&strip=all)
Prices for produce, meat and other fresh foods have been on a steady, pronounced trajectory in one direction over the past year, and it hasn’t been down.
Statistics Canada noted last week the cost of meat sold in supermarkets was 12 per cent higher on average in March compared to a year earlier, while veggie prices rose more than 6 per cent.
The loonie’s swift drop to the 80-cent level U.S. in recent months, coupled with lingering supply issues related to red meat (mostly beef now) are the chief reasons behind rising overall food prices, experts say.
And the higher wholesale costs for big grocers such as Loblaw, Metro, Sobeys and Safeway end up one way or another on your bill. “Food inflation is largely being passed through,” said Keith Howlett, an industry expert at financial services firm Desjardins.
MORE: Here’s how supermarkets smooth out big jumps in food prices
Still, the big jumps shoppers have been noticing could soon fade, industry executives suggest. The inflationary effects of the currency drop have largely worked their way into produce prices at this point, according to experts. Meat prices, while still high relative to last year, aren’t poised to jump higher anytime soon with supply now catching up with demand.
Metro is the country’s third-largest supermarket owner, operating banners like Food Basics, Super C and namesake Metro throughout Ontario and Quebec.
“We expect somewhat lower levels in the coming months as we cycle the meat price jump of last year, as well as the decline of the Canadian dollar,” La Flèche said.
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Discount shift
Experts say discount supermarkets are continuing to attract more customers, a shift spurred along by faster rising prices at so-called “conventional” or main banner locations.
Though Metro is ramping up renovation spending at conventional stores, La Flèche said Wednesday the grocer plans to continue opening up more locations of its Food Basics discount banner this year, as well.
“Customers are extremely value conscious,” he said.
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