As kids, when we live a sheltered life with our parents, we barely even realize how expensive the world is, but when we start earning, it suddenly hits us, doesn’t it? Then we start questioning every object before buying, and whether we really need it.

Well, here’s something that will blow your mind: TikTokerWillow Allenshared what a bag of groceries costs in Inuvik, Canada, and folks were left speechless. Her video garnered over 6.5 million views as she explains how staggeringly expensive living in the Arctic really is!

More info:TikTok

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Two people smiling indoors with text “Come get groceries with us in the Arctic,” highlighting grocery costs in the Arctic.

Image credits:willow.allen

This TikTok user shared what a normal bag of groceries actually costs in the northern community of Inuvik, Canada

Bag of oranges priced at $16.99, showcasing high grocery costs in the Arctic.

Groceries in the Arctic: packaged blueberries priced at $9.99 each, highlighting high cost of food.

In today’s story, we dive deep into the northern community of Inuvik in Canada, where the cost of groceries might actually make you cry out loud with surprise. Honestly, we are not exaggerating, because there, in the Arctic,Nutellacosts $48, while the cost of 4 chicken breasts is $47!

Researchreveals that while oil and gas prices have dropped in Canada much like they have around the world, food and housing prices in Canada have been increasing. It has beenobservedthat the annual consumer price index of food and non-alcoholic beverages in Canada has been steadily increasing over the last decade, with an 8.89% rise in 2022.

As TikToker Willow Allen invites us to go groceryshoppingwith her in the video, it’s evident how difficult living in such secluded communities might be for people.

Packaged ground beef showing high grocery prices in the Arctic at $21.89 per kg.

Nutella jars on a shelf with a price tag of $48.59, highlighting expensive grocery costs in the Arctic.

People were shocked to find that something as inexpensive as Nutella costs $48 in the Arctic, and they couldn’t hide their surprise

To get a deeper understanding of the inflation andpricingin the Arctic economy,Bored Pandagot in touch withMadhura, who was a student of economics and also has experience working in the financial sector. She spoke about the logistical challenges that drive up the cost of groceries in such remote communities as Inuvik, Canada.

“Transportation costs are higher in urban centers due to longer distances, harsher weather, and limited infrastructure. Lower population densities mean less demand, which prevents economies of scale in distribution and retail.”

“Import duties and tariffs are the other impacting factors as essentially, many grocery items in northern Canada, especially fresh produce and non-local staples, are imported from other countries (e.g., the U.S. or Mexico),” Madhura explained.

Minced garlic jar with $18.49 price tag, highlighting high Arctic grocery costs.

Packaged Arctic groceries; chicken priced at $47.09 for 1.166 kg, highlighting high cost in Northern regions.

We also discussed with our expert the typical price differences for staple goods between northern communities and southern urban centers, and the reason they are so stark. She claimed that supply chain disruptions, particularly during events likeCOVID,or the increased operating costs for remote retailers can bring about this difference.

Additionally, she also noted other factors like limited options for consumers to shop around or access alternativefoodsources and/or the need for stores to maintain higher profit margins to remain viable in challenging economic environments.

Meanwhile, she even narrated the reasons for inflation in the northern communities such as high demand, low supply; limited presence of retail companies, further increasing the average gap of supply; and global trends in energy and shipping costs.

Groceries from the Arctic on a table, showcasing high costs with ground beef, pizza, fresh produce, and packaged foods.

Receipt showing expensive grocery cost in the Arctic, totaling CAD 215.51, with groceries in the background.

Madhura also elaborated that the high cost of groceries places immense strain on financial stability, leaving little for housing, education, and other essentials. She mentioned that it also staggeringly affects countries with high taxes and lower disposable income.

Arctic grocery cost: wallet with money, receipt, fresh produce on checkout counter.

Image credits:Getty Images / Unsplash (not the actual photo)

Grocery shelf in Arctic store displays various milk alternatives with high prices, highlighting expensive groceries.

Image credits:Franki Chamaki / Unsplash (not the actual photo)

Lastly, Madhura also expressed that limited competition among retailers in remote areas plays a major role in driving up prices as it results in limited bargaining power of consumers (along with limited options for consumption).

She concluded the interview with some brilliant insights on how this problem can be addressed:

After the video garnered attention, people started questioning how the locals survived in such an expensive place as the Arctic

Comment about high grocery costs in the Arctic, comparing Nutella prices of $8 versus $48, with shocked emoji.

Comment on grocery prices in the Arctic with high engagement and reactions.

Comment shows Arctic grocery cost frustration: “48 dollars for sum damn Nutella,” highlighting expense.

Comment on grocery cost in the Arctic: “Excuse me! $48 for Nutella!” with emojis and likes visible.

Comment on Arctic groceries' cost, noting Nutella priced at $48.

Comment discussing Arctic grocery costs, noting Nutella priced at $6-9, with humorous emojis and high likes.

Grocery cart filled with fruits and vegetables in an Arctic store showcasing expensive prices.

Comment comparing grocery store prices in the Arctic with 358 likes.

Comment questioning high cost of Arctic groceries with 276 likes.

Comment on groceries cost in the Arctic by Melissa, expressing disbelief at the high prices.

Comment questioning how people afford expensive Arctic groceries.

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