The cost of hosting a summer barbecue is soaring this year, driven largely by an increase in beef prices.
While that due to drought and smaller Canadian cattle herds, Canada’s largest grocery retailer has some good news in its June food inflation report, released June 27.
Although food inflation in May saw a lower rate of growth than April, Loblaw said food inflation remains elevated compared to overall inflation.
“That said, Canadians have historically seen some relief at the register on fresh products over the summer months as June kicks off the local growing season in Canada,†the retailer says.
Statistics Canada notes the rose 1.7 per cent on a year-over-year basis in May, matching the 1.7 per cent increase in April.
Food purchased from stores was up 3.3 per cent in May on a year-over-year basis, according to .
Save on local produce
In its for June, Loblaw notes July and August will have the widest variety of local fruit and vegetables, with savings expected on local products until October.
In June, strawberries and bunched vegetables like asparagus, carrots, green onions and radishes are plentiful, the retailer notes.
Locally sourced produce eliminates factors like foreign exchange rates and lowers transportation costs, Loblaw adds. Customers can also enjoy fresher produce and longer shelf life.
In many cases, produce is harvested and ready for purchase in one or two days, compared to U.S. or Mexican produce which can take three to four days to reach distribution centres.
“Local field strawberries are generally up to 20 per cent cheaper than their imported counterparts at this time of year,†Loblaw adds.
Favourable exchange rates
A stronger Euro and offsetting benefits of a weakening U.S. dollar are also benefitting Canadian shoppers, Loblaw says.
The greenback has weakened since the beginning of the year amid ongoing investor uncertainty around tariffs and U.S. fiscal health.
“Given many commodities trade in USD, this is beneficial to food prices,†Loblaw notes.
More favourable exchange rates have helped stabilize prices for things like fresh produce, deli meats and cheeses, some vinegars, olive oil, and seafood.
Coffee and sugar prices stabilize
Weak crop yields driven by droughts and wildfires in Brazil and Vietnam have caused coffee . But prices are finally beginning to stabilize.
“Rains in growing regions and improved crops have helped to lower coffee prices in the most recent month,†Loblaw says in its most recent inflation report. “Prices remain up more than 150 per cent since 2024, but the recent reduction is a positive sign.â€
Sugar, another grocery staple that must be imported to Canada, is also benefitting from a more stable supply. Loblaw notes a strong supply out of Brazil and India paired with weaker demand recently sent sugar prices to a four-year low.
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