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Grocery inflation will fall below 2% by the spring and stay roughly between 1% and 2% for the rest of 2024, predicts a new report on the food and beverage industry. Farm Credit Canada, an agricultural lending firm, said it expects food price increases beyond 2024 to stabilize around pre-pandemic levels as the pressures driving prices higher are easing.

Spring 2024 outlook on grocery food inflation for Canada

The outlook for food and beverage manufacturers this year is more positive than last year, FCC said, though some sectors still face headwinds amid elevated interest rates and tighter household budgets. “However, population growth and stabilizing—in some cases, falling—input costs are providing optimism for margin improvement for 2024.”

The organization’s annual food and beverage report offers up forecasts for consumer spending, as well as specific food items such as sugar and flour.

Canada’s best credit cards for groceries

What is Canada’s inflation on food?

Canada’s annual inflation rate was 2…

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