Price of groceries expected to rise as fuel fluctuates
The P.E.I. Federation of Agriculture says, even if fuel prices dip in the coming months, people should expect to keep paying high prices at the grocery store.
Farmers are paying for fuel to plant their crops now, which means they’ll have to pass those extra costs along when it comes to harvest time.
"This is a very expensive crop that the farmers are putting in the ground right now," said Donald Killorn, executive director of the P.E.I. Federation of Agriculture. "The cost of their inputs, so fertilizer, for example, was very high, and we did anticipate that. What we did not anticipate was a dramatic spike in the cost of diesel."
Some business owners are already feeling the pinch.
Higher costs from suppliers forced The Gallery - Coffee House & Bistro in Charlottetown to raise prices.
"We’ve seen anything between five and 25 per cent increase in whatever bills, depending on whatever supplies it is,” said owner Jessica Fritz. "We didn’t go high up but we had to just add a little bit to it."
Fritz says they were honest with customers, who in turn were understanding of the increase at the register
Timothy’s World Coffee hasn’t put prices up yet, but holds free events as an incentive to get people through the door.
Owner Campbell Webster says he hasn’t seen a drop in customers.
"Not that we’ve noticed," said Webster. "In fact, sales are increasing, now this is coming out of COVID. In the last month and a half it started growing a bit."
Both Webster and Fritz say they’re optimistic business will remain steady but they’re keeping a close eye on prices, just like farmers are across the island.
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