Dominion says drought and exchange rate mean higher prices, short supply

A local grocery store says that prices are up and supply is down.

A sign at the Dominion on Blackmarsh Road in St. John's says that due to the current drought in California and the poor Canadian-United States exchange rate, the store chain is experiencing "significantly higher costs and gaps in supply."

Statistics Canada's latest consumer price index says the cost of fresh produce has increased by 10.9 per cent over the past year.

Some prices, however, are expected to drop again after Christmas when produced from Florida and Mexico enters the supply stream.