Thursday, January 26, 2017
Fierce price competition between grocers will likely keep food prices from escalating significantly in 2017, according to a new report. With price-cutting moves from Walmart and Sobeys keeping other supermarket chains on guard, average food store inflation will not likely exceed two per cent in 2017, says a new industry report from Kevin Grier of Market Analysis and Consulting Inc.
The main factors driving food price inflation in Canada are commodity prices and grocery retail competition, Grier notes, and currently grocery competition is “very intense,” with multiple grocers requesting price concessions from food manufacturers. “That indicates that the grocers want consumers to think they are fighting on their behalf. It also indicates that they expect to see a tight pricing environment for the foreseeable future.”