Inflation rates rose yet again this week, and daycares are beginning to feel the pinch because of rising food costs.
Moncton daycare Owner Janice Sutherland says many have been forced to take steps to reduce costs, “Under 50 percent are left that are still serving food. A lot of daycares have opted out so the families will have to bring their children’s lunch. They just can’t afford it.”
She says daycares who have stopped supplying food had no choice, “It’s a hard call, and it’s hard for families to have to pack lunches, but I can understand why they are doing it,” Sutherland says.
She adds at Home With a Heart they plan to continue serving snacks as long as they can, but others are being forced to take steps and come up with solutions in order to survive.
Childcare fees dropped by up to 50 percent in June, but Sutherland says they can’t raise rates to make up for what is being paid out to purchase food.
The Bank of Canada has raised its key interest rate this week by 50 basis points to 3.75 percent, and Governor Tiff Macklem expects the policy rate will continue to increase further.
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