Food inflation in Canada shows signs of easing, but grocery prices to remain high

Photo: The Canadian Press

Food inflation appears to be easing in Canada, but experts say shoppers shouldn't expect lower prices at the grocery store.

Statistics Canada says the cost of groceries in February rose 10.6 per cent compared with a year before, down from an 11.4 per cent year-over-year increase in January.

Yet a falling food inflation rate doesn't mean the price of food is coming down.

Instead, it means prices are rising less quickly, signalling the worst of the era of grocery price hikes could be behind us.

Sylvain Charlebois, director of the Agri-Food Analytics Lab at Dalhousie University, says the food inflation rate is expected to continue to cool throughout the spring and into summer.

But he says Canadians may still experience sticker shock at the grocery store as some food prices are still significantly higher than a year ago.