The cost of the average grocery bill in Canada–and how to lower yours + MORE Jan 17th

Welcome to MoneyFlex, our new column about the financial challenges Canadians are facing today. Each month, journalist and editorial assistant Margaret Montgomery will share expert insights and practical tips to help you flex your money skills—starting with how to tackle inflation’s effects on your groceries.

At the checkout of my local grocery store, I find myself holding my breath as the total on the screen climbs higher and higher with each scanned item. Even staples like margarine and pasta seem to teeter on the edge of unaffordability. 

I’m not imagining it—these foods recently topped the list for highest month-over-month price increases. In November 2022, you could expect to pay an average of $7.11 for a 907-gram tub of margarine in Canada, up 37% from the $5.16 you would have paid in the same month in 2021.

So how much is the average grocery bill in Canada? According to Canada’s Food Price Report for 2023, a family of four will spend $16,288.41 on food this year ($1,357…

The year 2022 was the one when inflation morphed from a minor concern to a major worry for investors, especially those hoping to retire sometime in the not-too-distant future. While central banks are well into their programs to curb inflation through periodic rises in interest rates, it could take the better part of 2023 or beyond before inflation returns to the 2% annual target with which most governments are comfortable. The Bank of Canada (BoC) has had a 2% inflation guideline since 1995.

How Canadian investors are responding to inflation fears

Not surprisingly, inflation is of particular concern to retirees and those hoping to retire soon. A recent Leger/Questrade poll, entitled the 2023 RRSP Omni report, found that while 87% of Canadians are worried about rising prices, many are still looking to invest. In fact, 73% of registered retirement savings plan (RRSP) owners plan to contribute this year, and so do 79% of those with tax-free savings accounts (TFSAs). The confidence in investing is surprising despite the fact Canadians are fretting over how inflation will impact the value of their RRSPs (69%) and TFSAs (64%)…