Falling Canadian dollar would increase the grocery bills

Falling Canadian dollar would increase the grocery bills

 

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The dropping Canadian dollar, which has plunged below the 70 cent mark, could increase the grocery bills, particularly when it comes to purchasing fruits and vegetables. Many Canadians now will have to go without expensive Florida oranges or California head of lettuce.

About all foods fruits and vegetables devoured in Canada are imported, making them more vulnerable to the loonie’s ebb and flows. “It truly comes down to the dollar,” said Kevin Grier, an agribusiness and food industry analyst. A year ago, fruits and vegetables bounced in cost somewhere around 9.1 and 10.1 percent, as per a yearly report by the Food Institute at the University of Guelph. The study predicts these food stuffs will keep on increasing above inflation this year, by up to 4.5 percent for a few things.

Sylvain Charlebois, the report’s main author, said for every U.S. cent the dollar falls, foods that are imported likely raise one percent or more. These prices have been increasing for years. In November 2011, one kilogram of apples cost an average of $3.35 in Canada, as indicated by Statistics Canada. After four years, the same amount cost $4.12. One kilogram of celery expanded from $2.23 to $3.08 over the same period of time.

While the expanded expenses have managed a hit to everybody’s wallet, they have a more purported impact on Canadians living on a tight spending plan or in remote districts, where fruits and vegetables are more costly than in more urban areas. Diana Bronson, the executive director of Food Secure Canada said the people living in northern and remote groups are well on the way to be harmed by these increasing costs.

Nunavut Bureau of Statistics reports that Nunavut residents typically pay around two times more than the Canadian average for staples. There, a kilogram of carrots costs $6.17 in March 2015, while the Canadian average was about $4 less. Lower-and white collar class people who can’t find an occupation that will pay them enough to buy healthy diet for their families are more likely to feel the pinch, said Bronson.

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