Aug 06, 2012
By Bob Sheppard
Drought conditions in the U-S are expected to boost Canadian food prices by as much as four per cent next year.
Economists predict we’ll be paying more for everything from pork to cereal.
R-B-C economist Paul Ferley expects food costs will rise 2.5 to 3.5 per cent this year and three-to-four per cent in 2013.
Extreme drought conditions in several U-S Midwest states are causing corn and soybean crops to wither, and analysts say the effects will ripple through the food chain.
Because corn is used to feed livestock in the U-S, Scotiabank’s Patricia Mohr says the rising cost of beef and pork will be most noticeable on grocery store shelves.