Food prices are stabilizing, but Nova Scotians are still feeling pinched

Food price inflation is easing, but community groups across Nova Scotia are scrambling to meet growing demand from people who aren't feeling any relief on their grocery bills.

According to figures from Statistics Canada's consumer price index, price growth for groceries hit a 40-year high about 18 months ago. In November 2022, grocery prices were growing at a rate of 13.1 per cent in Nova Scotia, and 11.4 per cent nationally.

Since then, food prices have continued to go up, but the rate of increase has been trending down. Figures from Statistics Canada for March put food inflation in Nova Scotia at 1.6 per cent, and 1.9 per cent nationally. 

"I don't think it matters," said Mandy Chapman, executive director of the Mobile Food Market.

Even though inflation is easing, it has already driven food prices up more than 20 per cent over the past three years.

"I think people just want affordable food, and the prices are still too high everywhere," Chapman said.

The Mobile Food Market is a non-profit organization that sells fresh produce and other grocery items out of a truck that visits several locations around the Halifax Regional Municipality.

Chapman said the Mobile Food Market strives to bring "dignified, affordable access" to people and communities that need it. Right now, she said, that's a big job.

"All Nova Scotians are now vulnerable because of the inflation rate and how food has skyrocketed," she said.

Chapman said her group sells food at prices 20 to 30 per cent lower than what most grocery stores offer.

Over the past 18 months – the same period over which food prices have been stabilizing – Chapman said her group has doubled its supply to meet rising demand.

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The Mobile Food Market is run by three staff members. Chapman said a one-time grant of $200,000 from the province may allow two more staff to be hired for the next year.

"It'll just build our capacity a bit more because right now there's three of us and it can be exhausting and the burnout rate is high," said Chapman.

Provincial grants

The money is one of more than 100 grants that went out this month to community groups across the province to tackle food insecurity.

Recipients that spoke to CBC News, including groups that run free food pantries and meal programs, all said demand has been steadily rising.

Farmers' Markets of Nova Scotia is using its $250,000 grant to expand a food coupon program that provides weekly allotments of "market bucks" that are redeemable at local farmers' markets across the province.

Justin Cantafio, executive director of Farmers' Markets of Nova Scotia, said his organization will have no problem bringing more people into the program.

"Demand is through the roof," Cantafio said.

"Demand is way higher than what we can do, even with this $250,000 of additional funding.… Every single one of our markets and their partner organizations that they work with have folks who are asking to be a part of this program."

Price drops predicted

Sylvain Charlebois, a professor of food distribution and policy at Dalhousie University, said sticker shock at the grocery store has changed shopping habits for many consumers and driven them away from mainstream grocery stores.

"Because consumers are retreating so much, at some point grocers will have to readjust prices."

He said it has already started happening with some products, mostly those found on the shelves at the centre of grocery stores, such as pastas, prepared sauces and spices.

He predicts falling food prices will soon become more common.

"If people are continuing to retreat and spend less at the grocery store, you are likely to see many, many food categories experience drops in prices, absolutely, by mid summer or early fall," Charlebois said.

But inflation has driven up costs in every category, not just groceries. Charlebois said high interest rates, leading to higher mortgage payments, and other inflated costs of living, are the biggest factors impacting people's ability to spend at the grocery store.

"I don't think that food inflation is going to be a problem anymore, for a while, but inflation [overall] will be a problem," he said.