Canada’s inflation rate slightly decreased in June, but grocery prices continued to rise. According to Statistics Canada’s latest consumer price index (CPI) report, overall inflation dropped to 2.8% in June due to lower gas prices, yet certain grocery items saw price hikes.
One notable increase was in chicken thigh prices, with fresh or frozen thighs surging by 8.2% from May to June. Comparatively, prices for beef and coffee rose by smaller margins. Year-over-year, chicken thigh prices spiked by 13.6% compared to the previous June.
Conversely, other grocery items that had previously caused concern for consumers, such as cucumbers, tomatoes, and grapes, experienced price reductions from May to June.
For instance, at a Loblaws in Toronto, a club pack of boneless, skinless chicken thighs was priced at $22.18, or $20.92 per kilogram. Similarly, a Walmart in North Vancouver sold a value pack of Lillydale boneless, skinless chicken thighs for $22.48, equating to $18 per kilogram. In Halifax, a pack of Our Compliments boneless, skinless chicken thighs was available for $20.92 per kilogram at Sobeys.
Experts suggest that the rise in chicken prices is driven by consumer demand. Michael von Massow, a food agriculture professor at the University of Guelph in Ontario, explains that as protein prices increase, consumers tend to opt for more affordable options like chicken thighs over pricier proteins such as beef. Von Massow emphasizes that any fluctuation in demand affects prices due to the limited availability of chicken thighs.
Sylvain Charlebois, director of Dalhousie University’s Agri-Food Analytics Lab in Halifax, concurs, noting that expensive beef prices are pushing consumers towards more economical protein choices like chicken thighs. While breast prices decreased slightly, drumstick prices rose. According to Statistics Canada, in May, chicken breasts remained the most expensive part of the chicken at an average of $14.58 per kilogram, compared to thighs at $13.72 per kilogram and drumsticks at $7.29 per kilogram.
Charlebois predicts a potential decline in chicken prices as demand adjusts. Despite the recent price hikes, he believes the supply of chicken will eventually align with consumer demand.
In light of rising protein costs, including beef and chicken, the availability of affordable protein sources may be a concern for consumers. While plant-based proteins are an option, von Massow mentions that the preparation time for beans and lentils may deter some individuals. Additionally, he notes a shift in consumer dietary habits over the years, with preferences often dictating choices, even amid price fluctuations in the market.
As consumers navigate the evolving protein landscape, the affordability and availability of various protein sources continue to be a topic of interest in the current market scenario.