An average family of four will be paying approximately $1,000 more for groceries in 2023 as food inflation continues to push prices higher albeit at a slower pace than what was witnessed last year, a new report warns.

Canada’s Food Price Report, which is compiled by researchers at Dalhousie University, the University of Guelph, the University of Saskatchewan, and the University of British Columbia, suggests that food prices will rise by another five to seven per cent in 2023 after increasing by more than 10 per cent in 2022.

The increase would push the average yearly grocery bill for a family of four up to $16,288.41. In 2023, the same sized family spent $15,222.80 on groceries on average.

“It is not going to be easy, however the good news is that I think the worst is behind us. The food inflation rate is likely to continue to drop in the months to come,” Dr. Sylvain Charlebois, project lead and Director of the Agri-Food Analytics Lab at Dalhousie University, told CP24 on Thursday morning. “The other thing is we have been in this for almost 12 months now so habits have changed. People are looking at different options, they're visiting different stores. It's no coincidence that Dollarama is offering more food now.”

The report is based on historical data which is then weighed alongside other variables, such as the forecasted inflation rate, the expected change to the value of the Canadian dollar and ongoing labour market shortages.

It found that prices are expected to continue to rise across most categories in 2023 but not necessarily evenly.

Fruit food inflation will be lower, forecasted at only three to five per cent in 2023. But vegetable prices could rise by six to eight per cent.

Charlebois also warned that some other items like beef will also get progressively more expensive as the year goes on.

“Beef is going to be a problem a few months from now. We're probably going to see price hikes after the barbecue soon. So if you're a big fan of beef, I would buy some right now. If you're a big fan of orange juice or oranges, I would buy some right now and bakery is another section where we are seeing high prices as well” he said. “It is all going to push (overall) food prices higher.”

The report states that restaurant prices will increase by a more moderate four to six per cent in 2023.