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Canadian Food Prices Predicted to Rise 3-5% in 2025

A new report forecasts higher grocery bills for families, driven by climate change, a weak Canadian dollar, and potential geopolitical shifts.

Almost two-thirds of Canadians say they have switched their primary grocery store in the past year to score better deals. A customer shops for produce at a grocery store In Toronto on Friday, Feb. 2, 2024.
Cantor's Grocery has added security in the wake of meat thefts. Meat prices are expected to rise between four and six per cent in 2025, according to the 2025 Food Price Report.
 A customer browses an aisle at a grocery store In Toronto on Friday, Feb. 2, 2024.
John Bailey, CEO of Regina Food Bank

Overview

  • The 2025 Food Price Report anticipates a 3-5% increase in food prices, translating to an additional $800 in annual grocery costs for a family of four.
  • Key drivers of rising costs include climate change, extreme weather events, and droughts, which have affected crop yields and livestock production.
  • The weak Canadian dollar is expected to increase the cost of imported food and essential farming inputs, further pressuring prices.
  • Geopolitical factors, including potential U.S. tariffs under President-elect Donald Trump, could disrupt supply chains and inflate costs for Canadian consumers.
  • While price increases are moderating compared to pandemic-era inflation, categories like meat and vegetables are expected to see the steepest hikes, with meat prices potentially rising by 4-6%.