Superb news for 2014: groceries will probably cost less

Next year may be a thrifty one for Canadian shoppers. The 2014 Food Price Index, an annual report from a team of economic soothsayers at the University of Guelph, predicts that prices for milk, eggs and other food staples will fall by 1.5 per cent in 2014. The reason for the savings can be summed up in one word: competition. According to report author Sylvain Charlebois, the Canadian launch of U.S. mega-store Target “created a disturbance in the food-retailing force.” In order to compete, grocers were forced to slash prices, which translated into cheaper essentials for Canadian consumers—a trend that will continue into next year. “There is a price war out there,” said Charlebois. “Retailers are desperate to maintain market share.” Of course, whether shoppers see savings will depend on their grocery lists: while frugal buyers who stick to basics may get a break, those who splurge in the organic aisle won’t be so lucky—as always, those products are only getting pricier. [Toronto Star]