Canadians can expect modest increases in food prices next year, but prices for staples like cheese, eggs, milk and frozen vegetables may decrease, a new report says.
The annual Food Price Index report from the University of Guelph in Ontario predicts food prices will rise between 0.3% and 2.6%.
The prices are being kept under control because of new competition in food retailing — such as Target entering the Canadian market and selling groceries — which has led to a price war, researcher Sylvain Charlebois said in a release about the index.
For 2013, "we actually underestimated the impact of the competition in the market," he said.
Fish and seafood prices are expected to increase the most, between 3% and 5%, as consumers and retailers press fisheries to adopt sustainable practices.
Charlebois said consumers will likely see higher prices for healthier and ethical products because of higher demand.