Food prices rose by 6.2 per cent between December 2024 and December 2025, according to data released last month by Statistics Canada. Bank of Canada research suggests the acceleration in food inflation last year was almost entirely driven by rising import costs, not domestic factors.
Rising food costs are hitting some Canadians particularly hard, with Statistics Canada data showing households in the lowest-income quintile spent about 27 per cent of their disposable income on food and non-alcoholic beverages. The average family of four is expected to spend $17,571.79 on food in 2026, an increase of up to $994.63 from last year.
A new Nanos Research poll conducted for CTV News suggests grocery prices are now the top financial concern for Canadians, surpassing even housing costs as inflation continues to rise. According to the survey, more than half of Canadians, 52.3 per cent, say grocery prices are their primary concern when trying to save money this year. Housing costs rank second at 23.5 per cent, followed by health care at 9.3 per cent.
And it’s not getting better any time soon. The 2026 Canada Food Price Report forecasts an overall increase of 4% to 6%. Key factors include:
Meat & Protein: Beef prices skyrocketed by 19% in early 2025 due to record-low cattle numbers caused by long-term droughts. This has pushed demand—and prices—for chicken even higher. Chicken prices are expected to rise substantially in 2026. Canada has strengthened beef import partnerships with Mexico and Australia. This should help stabilize prices, but the squeeze is expected to continue until at least 2027.
Trade Disputes: Tariffs and counter-tariffs with the U.S. in 2025 caused significant price volatility for imported goods like coffee and orange juice.
Labour Costs: Reforms to the Temporary Foreign Worker Program have created labor shortages in the agricultural sector, leading to higher production costs.
In January, Prime Minister Mark Carney announced that his government plans to boost a GST credit for low- and moderate-income Canadians to help with the rising cost of living, calling it the Canada Groceries and Essentials Benefit. The expanded benefits include a one-time transfer to eligible Canadians this year, and an increase in the annual credit over a five-year period. The parliamentary budget officer estimated the total cost of the program to be $12.4 billion by 2030-31.
We’re told to eat healthy but – let’s face it – the high cost of groceries sometimes forces us to fill our cupboards with food that may not be the best for us. Here are some tips from the Canada Food Guide to stretch your food dollar:
Stick to your list
Buying only what is on your grocery list will help you cut down on impulse buys.
Shop for sales
Check out flyers, coupons, mobile apps and websites for deals on foods that are on your list.
Look for reduced prices. Products getting close to their best before dates and oddly shaped or slightly bruised produce may be offered at a lower price or discount. These products are just as healthy as “perfect” varieties and buying them also helps reduce food waste.
Compare prices
Compare the unit price on the label to know which product is less expensive.
In grocery stores where price-matching is offered, use flyers to price match products on sale.
Scan different shelves. Companies pay more to place their products at eye level. You may find other versions of the same foods on higher or lower shelves.
Compare prices on generic and brand name products to see if there is a difference before choosing.
Foods sold in single-serve packaging can cost more. Buy the full size or family size version and divide it up yourself.
Stock up
Stock up on canned goods and staples when they are on sale.
Extend the shelf life of sale products. Freeze:
- fish
- fruit
- vegetables
- whole grain bread
- lean meats or poultry
Buying foods in bulk can help you save money. Be careful not to buy more than you need, because this can lead to waste.
Consider the season
Fresh vegetables and fruit are usually less expensive when they are in season.
Frozen and canned vegetables and fruits are also healthy options. They can be less expensive than fresh produce when it is out of season.
Choose plant-based protein foods more often
Beans, lentils and other legumes are inexpensive protein foods. Use them in your meals several times a week.
Limit highly processed foods
Limit highly processed foods. These are usually low in vitamins and minerals and can cost more.
Prepare foods at home. Although they can save time, prepackaged foods such as grated cheese and pre-seasoned meat cost more.
Set a budget
Decide how much you will spend on groceries each week or month.
Explore grocery stores
Shop at discount grocery stores, which offer lower prices.
Avoid grocery shopping at convenience stores, which are more expensive.
Check with your grocery store to see if it offers any discounts. Some stores feature a “seniors’ day” or a student discount day with special discounts.
