The vast majority of Canadians surveyed in a new RBC poll said they believe the price of foods they typically buy has gone up in the past year, and plan to alter their budgets to accommodate the changes.
According to the poll’s results compiled in the quarterly RBC Canadian Consumer Outlook Index, those surveyed spent an average of $411 per month on groceries. Ontarians spent the least on groceries in a month at $379, while Quebecers paid the most at $448.
The poll also found that:
- 91 per cent of respondents said they are “tightening their belts” and making smarter decisions when purchasing food.
- 43 per cent are cutting back on other expenses.
- 33 per cent said food prices had a significant impact on their day-to-day budget.
The squeeze on their budgets meant more than half of respondents (57 per cent) said they are comparison shopping more than they have in the past, while 41 per cent said they are following a strict budget and buying fewer impulse items.
About 15 per cent of respondents said they are looking at using their car less.
Jason Round, head of financial planning support at RBC Financial Planning, said setting and following a budget will help consumers deal with rising costs.
"Creating a budget that covers all of your expenses -- including must-haves such as groceries -- can help keep your spending under control,” Round said in a statement. “Since costs can change, it's essential to regularly review your budget to stay on track and make any adjustments necessary to help balance living for today and saving for future goals."
According to the report, food inflation increased less in 2012 at 2.4 per cent than in 2011, when it was up 3.8 per cent. The bank predicted last year that drought conditions in the United States in 2012 could send food prices rising anywhere between 3 and 4 per cent in 2013.
