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 May 2023, you could expect to pay an average of $7.46 for a 907-gram tub of margarine in Canada, up nearly 58% from the $4.73 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 ($1,357.37 a month)—that’s up $1,065.60 from 2022.
The rate of inflation reached its peak in June 2022 at 8.1%, according to Statistics Canada in its Consumer Price Index (CPI) report, which tracks the cost of hundreds of everyday goods, from groceries to gas. Inflation has been falling steadily ever since and it now sits at 3.4%, as of May 2023. The food inflation rate in November 2022 (11.4%) was the fastest year-over-year increase since 1981. Are we over the inflation hump? Not quite. Statistics Canada says that grocery prices increased 9% year-over-year since last May. For reference, the Bank of Canada aims to keep inflation at 2% per year, using the overnight rate, among other tools. Rising fuel costs, labour shortages and supply-chain problems have also made food pricier.
Another source of high bills at the grocery checkout: lack of competition among grocers. The Canadian Competition Bureau released a 2023 report called “Canada Needs More Grocery Competition,” in case it’s not clear. That means more new grocery retailers, and less restrictions for new stores to open up. The bureau observed a trend of “Canada’s largest grocers increasing the amount they make on food sales,” before the supply chain issues even began.
I’m not alone in my experience. Canadians are facing increasing food costs at supermarkets across the country. Nearly six-in-ten respondents (59%) in a recent Equifax survey said they “are using coupons and looking for deals more at grocery stores versus last year.” Just over half of Canadians (54%) are “cutting back on grocery shopping altogether.” And, alarmingly, a survey by the Canadian Hub for Applied and Social Research at the University of Saskatchewan found that almost 20% of us are eating smaller meals or skipping meals because of high food prices.
What’s the average grocery bill in Canada?
Food costs are rising—how much more you’ll spend will depend on your age, sex and location. Canada’s Food Price Report, prepared by researchers at four Canadian universities, tracks the annual cost of food in Canada based on retail grocery prices and restaurant prices. The average food cost per month for a woman aged 19 to 30 years old (that’s me) was about $297 in 2022. That’s $3,564 per year. Men in the same age group spent $529 more for the year, at $4,093 total. A family of four (two adults and two kids, aged 14–18 and 9–13) spent an average of $15,223 for the year. Older adults spent less on food than younger adults; in 2022, women aged 70-plus spent an average of $3,273, while men aged 70-plus spent $3,637.
Across all provinces, food price inflation from 2021 to 2022 averaged about 10.5%. Increases varied, from a high of 11% in Quebec to a low of 9.2% in B.C. The report also predicts that overall food prices in Canada will continue to rise by 5% to 7% in 2023. Sigh.
So, how can you save money on groceries?
I can’t change the price tags at the grocery store, but I did get some money-saving advice from Liz Schieck, a Certified Financial Planner at the New School of Finance.
How to budget for groceries
Budgeting for everyday expenses like groceries is essential. Without a budget, you might start dipping into funds needed for your must-pay bills or emergency savings.
It’s by numbers only 11% or less but in reality the prices in store are 35 to 100% or more in 2021 the 16Ltr Canola was 19.99 which in 2022 was jumped to 46.00 and 49.99 respectively, bread from 1.50 to around 2.50 or more (calculate the percentage) you name it all eggs, milk. Cheese and vegetables everything is average 50% or more than in 2021
My first visit in the grocery store is to the meat department where I look for discount stickers on meat that will go past the best before date in 24-48 hours. Just this past weekend I found bone-in, skinless chicken breast that was already on sale for $1.98 / lb and the packages were discounted 40 – 50% (this store uses an X$/package discount method). All I did was look for packages where the discount sticker was about half what the original price was. I took the chicken home (about 24 breasts in total) deboned them and packaged them in the freeze. Total price per breast was about $1.25. We also regularly by discounted bananas peel and slice them and IQF them for use in smoothies and desserts or banana bread.
Yes, groceries are exceptionally expensive right now, but I meal plan around the flyers and what I can get the day I go. Our bill is higher for sure but by cutting out some luxury items like trips to the local butcher we have done okay.
Lastly, I’m a huge fan of the $1 / loaf fresh bread (Italian or French loaf) at our local Superstore!
I guess what goes around comes around again….I have been cooking and spending on groceries for over 50 years. All the current tips are great, please listen to them and apply to your family. Its like the saying goes – less is better. Your fridge/freezer and cupboard should be almost empty by the time you shop for more, no overloading that way and everything is always fresh. This will save you money by not wasting!!!
I have done a few things to try to save money. I bought a half cow from a farmer. the initial price is high and you need a decent size freezer but the cost per pound is amazing. I get premium cuts for about the cost of ground beef. I find shopping every other week and using what I have saves money. And ordering online is easier to modify and limit the total cost of the order. Sadly I have not found that a veggie share saved money. Although nice to get local food it is definitely way more the in season fruits and veggies and depending on the one you choose there can be a LOT of foods you have now idea what to do with or your family won’t eat(kids are picky sometiems and wont try new things).
I do agree prices have gone up, but there is a bright silver lining to this all….Would it be terrible if the grocery prices, caused people to lose weight (smaller portions) and the obesity rates declined…reducing the impact on our health care or they started making smart financial decisions in the grocery (coupons and comparing prices, plant a garden)?
Prior to inflation, people wouldn’t chose to make the healthy choice by eating smart (smaller portions), but now they might accidentally exist at a healthier weight. Also, I seem to read that because of the prices, people are making the smart decisions financially (coupons comparing prices). So, losing weight and potentially reducing the the household debt by force sounds like a win to me.
I realize there are many hurt by this inflation, however I think those that do most of the complaining put themselves in a position to struggle. House they couldn’t really afford, latte every day, eating out regularly, endless consumer purchases just to feel good or show off. Bottom line, if you were 5% away from having something unaffordable, you did this to yourself. How is keeping up with the neighbours, Instagram and Facebook friends working out?
Prices have gone up while the quantity has gone down. Like to read an article on the profit margin of these grocers over the last decade. Great tips on how to save.
Here’s another tip – when you are grocery shopping, stick to food items. If you are still buying paper towels, plastic wrap, plastic sandwich and snack bags, j-cloths, or cleaning supplies (toilet cleaner, bathroom cleaner, kitchen cleaner – you get the idea) switch over to items that you can reuse over and over. Instead of the plastic wrap / bags use beeswax wrappers, find out how easy it is to use vinegar and baking soda for so many cleaning jobs, use the same cleaner for all rooms / areas; don’t buy items like j cloths – use cotton kitchen cloths. Don’t buy bottled water – get a filter instead. Skip the dollar store – it is amazing how all those small purchases add up.
Instead of shelling out for a meal kit, make your own. It takes about 2 hours on the weekend to prepare and refrigerate or freeze ingredients for a week’s worth of meals. I wash, chop and freeze vegetables, boil and freeze beans (much cheaper than canned) and portion out and freeze meat substitutes (meat and fish would be the same). I boil some eggs and keep them in the fridge. Then when I need to make a meal I need to choose a starch (pasta, rice, potato) and add a pre-prepared vegetable and protein.
first deciding which dishes you will prepare during the week. This is where being realistic comes in; if you are likely to get tired of cooking by Thursday, maybe plan to make three meals total.
This is ridiculous! If you’re tired of cooking by Thursday, you’re just lazy. If you can’t afford it, bloody well learn to cook and do what you need to to. If you don’t waste money on take-out and eating out, you won’t have to budget like this.
I use the Flipp app every week. What I try to do is plan my weekly meals around what’s on sale. My husband and I are also big on leftovers so we cook extra for the next day or else we’ll modify and make something different with the leftovers. We have also invested in a vacuum sealer so we buy meat in bulk, portion it out and freeze it for meals. Some of the money saving tips in this article are great.
Sounds like tips for rich people who eat out all of the time.
For people who say eating less could cause people to loose weight it can be quite the contrary as not eating enough can cause weight gain, especially when the person can’t afford healthy foods and lives on ramen noodles.
One of the main reasons for ALL inflation is the carbon tax.
Everything is transported using some form of fuel that is taxed.
Wake up and vote Liberals and their eco terrorist agenda out. Our country is less than 2% of global emissions. Whatever we do will have no impact except for virtue signaling.
This article misses the real reasons for our food prices, along with every other price increase we have experienced…The reason falls squarely on the shoulders of our PM and federal government for creating the massive inflation by printing money and giving it away without thought, and implementing useless energy policies that will do nothing for the climate but will make more and more Canadians poorer.
Another thing to consider buying anything on “deal” is were you buying it anyway. I have heard many people talk about the great deal they got when it wasn’t on their radar when they started. Not so bad if it replaces another item on the list, but that’s often not the case.
I plan my meals around 50% off stickers. I rarely go with a shopping list, but have a good idea of what I can make with what is on sale.
Good tip….freeze butter when you buy it at 3.99 rather than wait until out and buy at 8.99
This is a post for people with money and dances around the real issue. For example, in our house, we don’t eat in restaurants because it costs $80-$100 for one meal. That’s our one week grocery budget (working couple with kids).
The problem isn’t the prices, it’s that a good, cheap beans/rice/veg diet has been marketed out of existence in Canada. The best way to fight back is to learn how to MAKE one pot, cook once meals using fresh ingredients (e.g. soup/stew, chilli, rice bowls, burritos, pasta sauce, paella, no-cheese lasagna, curries, tofu/thai bowls, granola etc) and then reheat it throughout the week (chop/freeze bulk ingredients like onions ahead of time to make prep/cooking faster). Use spices instead of buying jars/cans of sauce.
Millions of people eat this way around the world, with far less income.
Love the tip in the comments about freezing beans instead of buying canned.
I spend at least $1,600 a month on just 2 of us and we don’t eat out. I make most things from scratch, but to feed a growing child and eat well and fully and not fill up on junk calories it costs a lot of money. I don’t buy alcohol or pre-made drinks but if I buy tea and kombucha but still that only adds an extra $100 at the most per month.
I cut my grocery expense down from $400 in 2021 to $130 per month in 2023..
Buy bulk, avoid processed food, buy on sale, buy cheapest based on per lbs or kg or gram.
Use dryer towels such as Bounce?
I rip in half and that seems to be enough.
Wow…$400 per month.
Even with increased food prices, shrinkflation my monthly food bill is $120. (90% is organic)
Perhaps the difference is I cook and bake.
Ave. large bowl of homemade chilli costs me .78 cents to make, a hardy homemade spaghetti sauce costs .69 cents per serving, homemade muffins , complete with fruit, are .64 cents each. My average homemade meal ….breakfast, .92cents, lunch 1.14 , dinner 1.67..
Believe me I eat well!
It never ceases to amaze me how people will put high test gas in their car, but do not put high test food in their body.!
Money sense? The rule of 72.
Take 72 ÷ by interest rate and you get the number of years for your money to double.
It also works backwards?
If a financial institution charges a 3% handling fee on your investment, they get one half of your principal investment in 25 years…probally why they tell people to stay in for the long term
Old saying…one dollar saved is 2 dollars earned.
In this world of image and idols, people spend their hard earned money on things they do not need, to impress people they probally do not know or like.
Why use bounce…Micro fibers, toxic chemicals.
Vinegar works well!
Want to save, buy a clothes rack, and let them dry naturally in your home…the humidity released is good for your home and helps to make the home or apt to be warmer….dry air holds no heat ☺
Two fold saving…warmer house, and no dryer electricity..
Rely on common sense.
Disagree with the one who said to let your cupboards empty before refilling.
If a product I use a lot, i.e. pasta goes on a good sale, I stock up…it was $3.50 ,now on sale for 2.00
Do the math …that is a 43% saving or return..better than most investmentsstock up when it is on sale.
Here are a few changes I have made toward household savings; use my PC Optimum card as much as possible to accumulate points (not PC credit card – just buy at stores related to PC points) – it is a good thing when the cashier says, want to us $10 toward your groceries?
No dryer sheets – use white vinegar in the rinse load and hang dry most of the clothes; in the dryer I invested in two dryer balls to reduce static and wrinkles – works really well.
Menu plan – using what is in my freezer (most of which was bought on sale or 50% off best before dates) and make grocery list according to needs versus wants (with an indulgence here or there 🙂
Make lemon scented cleaner – buy up some discounted lemons, use the peels or the chopped up lemons in white vinegar – let it sit for a few days, add water and a drop of Dawn dish detergent and put in a spray bottle; nicely scented, grease cutting cleaner for all surfaces.
Use the Flipp app, Good to Go app, and my favourite, Flash Food app to purchase discounted items (good way to get those lemons in a $5 produce box through Flash Food).
Prepare veggies ahead so you know what is in the fridge and store as many veggies like celery, carrots and fruits like berries that spoil quickly, store in glass jars. Amazingly they last a lot longer.
Yes – these changes require extra thinking and planning but in the long run the savings add up.
Learn to cook using fresh ingredients, frozen veggies are more economical and are healthy as they are always picked at the peak of their season and frozen.
Go shopping first thing in the morning as I find that is the best selection of discounted meats especially.
Cheers! We are in the proverbial economy boat together – let’s keep each other healthy and happy by rowing together!
Why do you only publish select banks, when speaking about Cash back, rewards ,credit cards,debit etc. etc. Is it these are the banks that sponsor Money Sense? Would like to see more content on other banks, as well as credit unions (ex: TD, Vancity,Coast Capital, etc.) that offer saving money cards as the ones you usually publish please. Groceries are a mystery game now to find the card for use. Would like a response back please.
Thankyou
I don’t know where they got those numbers from but food is now way way more expensive than they suggest on here. There are two of us and we don’t eat junk food. Our grocery bill is 1200 a month in Victoria British Columbia. How ca a family feed themselves. Outraged!