Summary: In 2016 the Canadian food will be more expensive than in 2015 because of the Canadian dollar devaluation. Most of Canada's fruits and vegetables are imported, that makes their price really sensitive to currency fluctuation. Meat, fish, seafood, dairy, eggs, and grain prices are expected to increase. According to Weston, fresh-foods continue to have a strong inflation.
Effect: Fresh-food supply in restaurants will decrease because of the the change in currency. With the same amount of Canadian dollars, restaurants can buy less food. The change in quantity per price cause a shift in the supply curve because it is a change in resource prices. Canadian restaurants will serve less fresh-food and increase its price because it is an expensive resource because of the devaluation of their currency.
Food prices set to rise in 2016 as weak as loonie takes a bigger bite
By The Canadian Press