Canadians’ grocery bills are going to get more expensive next year. That’s the message coming from Canada's Food Price Report 2021.

The official report, which was shared on Tuesday, December 8, suggests that overall food prices will increase between 3% and 5% next year.

In particular, meat and vegetables are expected to be affected, with both expected to climb in cost by up to 6.5%.

Similarly, baked goods could get pricier by up to 5.5%.

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$695 The average price increase for families in 2021

In fact, the report suggests that the average family could spend nearly $700 more on groceries next year.

This means a four-person family is expected to spend a whopping $13,907 on their food shopping in 2021.

There are several reasons for the price shift, explains the report, which comes from Dalhousie University and the University of Guelph, as well as the University of Saskatchewan and the University of British Columbia.

Perhaps unsurprisingly, the COVID-19 pandemic had a considerable impact, particularly related border and facility closures, unemployment and changes to production, manufacturing and distribution.

All of these aspects, combined with changes to retail practices to enhance safety have had an impact on food prices.

“An oil price war and the devaluation of the Canadian dollar were also significant factors,” reads the report.

*This article's cover image is for illustrative purposes only.