The Financial Post is reporting that a Donald Trump presidency could spell higher grocery bills for Canadians. A new report from Dalhousie University suggests that food prices are forecasted to rise between 3 and 5 per cent in 2017. The report outlines that the average Canadian family could spend up to $420 more on groceries next year.
The Financial Post article states that Trump could trigger the next commodity supercycle which happens every 10 – 15 years. An increase in commodity pricing means increased costs for food producers, which in turn translates into higher food costs for consumers. Add that fact with a potential interest rate increase and a strong U.S. Dollar and you have the recipe for high food price in Canada.
The last commodity supercycle occurred during the Bush administration, and according to the Financial Post, Donald Trump’s promise to fund infrastructure projects has already increased the price of iron and cement. The speculation is that the cost of other commodities will start to rise slowly.
Source: Financial Post