HALIFAX – The plunging Canadian dollar could soon have an impact on prices at the grocery store.
Researchers had to release a revised forecast on the price of food Tuesday just two months after their initial report.
At the time, the Canadian dollar was worth $0.88 against the American dollar. The Food Institute of the University of Guelph said they decided to issue the revision after analysts predicted the dollar could fall to $0.75.
“While we expected the Canadian dollar might soften somewhat, we did not anticipate the degree to which it decreased,” the report reads.
Imported foods, especially fruits and vegetables, will see the highest increases in price.
Researchers now think vegetables will jump by 5.5 to 7.5 per cent by the end of the year as opposed to the 3 to 5 per cent initially predicted.
The price of fruits and nuts could rise 3 to 5 per cent, which is up from 1 to 3 per cent in the original forecast.
READ MORE: Big jump looms for fruit and veggie prices as loonie crashes
For grocery stores like The Carrot co-op on Gottingen Street, it’s forcing them to keep a close eye on prices.
“We already try to keep our margins as low as possible,” said produce manager Alec MacKinnon.
“We try to pass on all savings to the customer but if the prices go up for us, we have to pass on those costs almost directly to the customer.”
Consumers are also bracing for the high costs and preparing to make tougher choices.
“It makes you plan more carefully,” said Sandra Parker as she browsed for groceries at The Carrot. “It’s more rationing I guess…and looking for value.”
At the Souls Harbour Rescue Mission, where they serve about 100 hot lunches every weekday to the community’s needy, they’re also preparing for the increased costs.
The mission relies on donations but purchase whatever they don’t receive.
Chaplain Ken Porter with the mission says the high price of food will affect how much they buy and it might also bring more people through their doors.
“We may see more people coming. If they can’t purchase — if they don’t have the financial means to buy a month’s worth of food, then towards the end of the month we’re going to see a lot more people,” he said.
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