Canadian Grocery Prices Jump 4.7% in November, Outpacing Overall Inflation

Grocery Costs See Sharpest Rise in Nearly Two Years

Canadian consumers faced a notable increase in grocery bills in November 2025, as Statistics Canada announced that prices for food purchased from stores rose by an average of 4.7 percent compared to the previous year. This marks the largest year-over-year jump in grocery prices since December 2023 and represents an acceleration from the 3.4 percent increase recorded in October. The data was released on Monday, December 15, 2025, as part of the latest Consumer Price Index (CPI) report.

Despite the significant surge in food costs, Canada's overall annual inflation rate remained unchanged at 2.2 percent in November, holding steady from October's figures. This stability in the headline inflation rate was largely due to cooling prices in other sectors of the economy.

Key Food Categories Driving the Increase

Several specific food categories contributed substantially to the overall rise in grocery prices:

• Fresh or frozen beef saw a significant price increase of 17.7 percent.
• Refined coffee prices climbed by 27.8 percent.
• Fresh fruit, particularly berries, were identified as a primary driver of the acceleration.
• Other categories, such as fresh or frozen chicken (up 7.4 percent) and lettuce (up 26.8 percent), also experienced considerable hikes.

Additionally, a broad category of prepared foods, including items like soups and crisps, also saw rising costs.

Factors Contributing to Higher Food Prices

The increases in food prices are attributed to a combination of supply-side constraints and global market dynamics. For beef, lower cattle inventories across North America have been a key factor. Coffee prices have been impacted by adverse weather conditions in major growing regions and by U.S. tariffs on coffee-producing countries. Supply pressures were also cited for the higher cost of fresh fruit and berries. Economists also point to global trade frictions and a softer Canadian dollar as factors that can push up import prices for grocers.

Broader Economic Context and Consumer Impact

While grocery prices surged, the overall inflation rate was tempered by declines in other areas. Gasoline prices, for instance, fell by 7.8 percent year-over-year in November. Travel services and accommodation also saw price reductions, with hotel prices in some regions, notably Ontario, being lower due to a base-year effect from high demand during Taylor Swift concerts in November 2024.

The Bank of Canada, prior to this report, maintained its benchmark interest rate at 2.25 percent. However, the persistent rise in food costs continues to strain Canadian households. A report from October 2025 indicated that monthly food bank visits have doubled since 2019, highlighting growing food insecurity. Furthermore, a separate report released earlier in December projected that consumers could face an additional $1,000 in grocery expenses in 2026, with economists expecting food inflation to remain stubborn into the early months of the new year.