The Globe and Mail reports in its Wednesday edition that Canadians can expect bigger grocery bills next month if oil prices remain high due to the conflict in the Middle East. The Globe's Mariya Postelnyak writes that the immediate financial hit will come from food staples that are particularly susceptible to energy costs. Higher energy costs typically trickle down to nearly every stage of the food supply chain, raising the cost of anything from operating farm machinery to crop drying and food processing -- but not everything is reflected in the grocery bill right away. Transport costs, however, have the most immediate impact. This means slightly higher prices for items such as lettuce and spinach, citrus fruits and pulses, among other essentials. "If transportation costs went up 5 per cent, that would be a 0.5-per-cent increase at the grocery store," said Professor Michael von Massow at the University of Guelph. Though food inflation in Canada eased slightly year-over-year in February compared with January, oil price hikes now present "a double whammy," said RBC chief economist Frances Donald. "Everyone has to eat," she said. "When you see gasoline and food prices go up, people will look at other areas to cut."
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