The Canadian Federation of Agriculture (CFA) announced that on February 8, 2022, the average Canadian household will have earned enough income to pay their grocery bill for the entire year. It is called Food Freedom Day.
The purpose of this calculation is to understand how Canadian households are coping with rising food costs and economic factors. This year the calculation was one day less than last year’s Food Freedom Day on February 9, 2021. This might be surprising considering rising overall inflation and food costs. The pandemic has affected people differently. Some were relatively unaffected moving to work from home and reducing expenses, while others were out of work completely. Income ranges make a difference too. Canadian households in the highest income bracket spent only 30% more on food costs while earning nearly 600% more than Canadian households landing in the lowest income bracket.
How it’s calculated
Using Statistics Canada data, CFA calculates Food Freedom Day by determining the total amount Canadian households spend on food and non-alcoholic beverages (f&b) and average household disposable income. Then they calculate f&b expenditure ÷ household disposable income = percentage of income per year spent on f&b. Finally, they take the percent spent on f&b and ÷ 365 days in a year to arrive at the number of days from January 1 it will take to arrive at Food Freedom Day. Source