Rising food prices around the world mean you’ll soon have to pay a bit more for your morning coffee and doughnut.
Tim Hortons has started informing its customers that it will implement a small price increase on various items starting April 11.
The coffee shop chain, which announced in February it would have to raise prices, hasn’t specified which menu items will cost more next week. The price of a large cup of joe is expected to go up by seven cents.
"Tim Hortons restaurants have worked hard to protect its guests from price increases over the past year, despite the significantly rising costs of commodities like wheat and cooking oil, increased labor and operating costs, and most notably coffee bean prices, which have nearly doubled. As other restaurant chains have already done, we are increasing the price of selected items this spring. For example, the price of a large cup of coffee will rise about seven cents. Tim Hortons will continue to deliver the best value by providing great quality products at affordable prices," said Tim Hortons Manager of Public Affairs Alexandra Cygal in a statement Tuesday.
A fungus caused by unpredictable rainfall and higher than normal temperatures has killed much of the Colombian coffee crop. Colombia is one of the world’s top three coffee-producing nations.
The wholesale price of coffee has nearly doubled. Sugar prices have also risen 40 per cent and the cost of wheat has doubled in the past year.
Last month, economists warned food prices will surge between five and seven per cent. Bad crops, high oil prices and a struggling economy are to blame.
Tim Hortons raised prices in its American stores by three per cent in February.
But the Canadian coffee giant isn’t the only retailer to raise their prices. Loblaws and many other major grocery retailers have raised prices as much as five per cent to combat the rising costs of wheat, sugar, and vegetable oil and fuel.
Here are some handy hints to fight inflation from Canadian Business:
1. An obvious way to guard against sudden spikes in food prices is to stock up. "It may seen trite to say that more jams and pickles in the cold cellar will save us," says the University of Guelph's Evan Fraser. "But if a critical mass of people have three weeks of food, plus a month worth of supplies in their house, then the likelihood of a food price destabilizing a society is reduced."
2. Buy food in bulk, and seek out no-name or house-brand products.
3. When planning your household budget, take climbing energy costs into account. As Joseph Doucet, Enbridge professor of energy policy at the University of Alberta, points out, though oil prices may go up and down on a weekly (or even daily) basis, "the long-term trend is rising."
4. Do a cost-benefit analysis on your vehicles and major appliances. While it may not make economic sense to immediately trade in your new gas-guzzling SUV, there might be significant long-term savings in upgrading to an energy-efficient furnace.
5. Buy local. As energy costs increase, it will cost more to ship food across great distances, which will ultimately be reflected in the price on the grocery store shelf.
6. Take note of weather events. After a recent cold snap in Mexico destroyed 70% of the leading tomato-producing region's crop, consumers felt the pinch almost immediately, as produce and other non-perishable items are particularly vulnerable to supply shocks. But if you know that weather is to blame for a spike in price, you can make an effort to steer clear of the affected product.
7. Drive less, take public transportation, and carpool whenever possible.
8. Go south. If possible, you might want to do a little comparison shopping in the U.S., where prices, particularly for fuel, are often lower than in Canada. "We're all smart enough to look for the best deal and seek value, including going over the border if we have to," says Bruce Cran, president of the Canadian Consumers' Association.
9. Consider substitutions. While it may be difficult to avoid price hikes that stem from the rising cost of sugar and wheat, some products offer more wiggle room. For instance, if the price of beef spikes, you'll save by opting for hamburger over steak.
10. Plant a vegetable garden. With transportation costs increasing and unpredictable weather events becoming more frequent, it never hurts to have access to your own supply. "It doesn't have to be fancy," says Ron Lawson, "but that's one sure, solid way you can help."
With files from The Canadian Press.