Inflation Rates Hit Montreal Consumers

Canada's inflation rate as reached almost 10%, which has affected Montrealers ability to afford many commodities, with gas and food experiencing large prices increases.

In Quebec, Dairy prices just experienced another hike, as The Canadian Dairy Commission’s (CDC) approved a price increase of 2.5% for milk for the second time this year – following an 8% increase in February. This came into effect on September 1. 

Inflation and the issues with supply chain are major drivers for price increases for many commodities, but food in particular. 

Scott Satov, CEO of Loans Canada says the problems with the supply chain and the war in Ukraine are the two main reasons for inflation increasing. He said the other reasons include shortage of labour, shortage of shipping, and delays at ports – especially in Ukraine. 

He said for the economy to function well, you want commodities to be held onto for the least amount of time to pass onto consumers in a timely manner. Satov said you don't want to hold onto these items prevent from consumer getting it. He said if ship is stuck in a port in Ukraine, it interrupts the supply chain.

Those in rural parts of Montreal are not experiencing the same food prices as those in the city.

Overall, food prices are rising with inflation. "Food prices up 10% in a year quite a big move," he said, adding that inflation is up almost 8% per month. He said that specifically, food is up 10% year to year, based on data from Statistics Canada. Satov noted a different between food prices in rural and urban communities. 

Satov believes this is leading to more food insecurity. Food banks in Montreal have cited an increased in clientele. Satov said there is a big movement to eat local, adding that this is unfair to put on people who are trying to budget. "They're just looking for ways to feed family more pressure," said Satov.