Food Inflation Increased Since 2022, Peaked End of 2025

Since 2022, grocery prices in Canada have surged by approximately 22%, outpacing the average 13% increase in other consumer prices, as reported by the Bank of Canada. In December 2025, food inflation rose to 5%, driven primarily by increased costs of imported processed foods and domestic meat due to supply issues and drought. Senior economist Olga Bilyk highlights that various production stages and cost pressures contribute to these rising prices, which can take six to nine months to fully reflect in consumer costs. Though import-related inflation may ease, persistent domestic pressures, particularly on meat prices, are expected to continue.

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