The Globe and Mail reports in its Thursday, April 11, edition that a new report on the food and beverage industry predicts that grocery inflation will drop below 2 per cent by spring. A Canadian Press dispatch to The Globe reports that inflation is expected to stay between 1 per cent and 2 per cent for the remainder of 2024. The report, by Farm Credit Canada, an agricultural lending firm, states that food price increases beyond 2024 are likely to stabilize around prepandemic levels, since the factors that were driving prices higher are easing. The outlook for food and beverage manufacturers is more positive this year compared with last year, according to the report. However, some sectors still face challenges due to elevated interest rates and tighter household budgets. Despite this, population growth and stabilizing input costs are providing optimism for margin improvement in 2024. Canada's annual inflation rate was 2.8 per cent in February. Grocery prices were one of the main factors pushing it lower. Grocery inflation was 2.4 per cent that month, down from 3.4 per cent in January as the cost of many items declined year-over-year. However, slowing inflation does not mean prices over all are dropping.