The rise in food prices is changing patterns of consumption

Canadians plan to tighten their belts against the food price inflation.

According to the Royal Bank (Canadian Consumer Outlook Index) survey on the prospects for consumption, 84% of Canadians believe that food prices have increased. This increase will lead to 91% of Canadian change in their consumption. They will be careful to compare prices (57%), buy less on an implulsion (41%), reduce other expenses (43%), use  less the cars (15%).

The average Canadian spends  411$ per month (€ 308) for food. Food prices increased by 2.4% last year, after increases by 3.8% in 2011 and by 1.4% in 2010. The drought that affected in the United States last year may lead to a further increase of 3 to 4% this year. According to economic services of the Royal Bank Canadian economy should increase 1.8% in 2013.

source : RBC royal bank