What caused the significant increase in Canadian food inflation last year?

Bank of Canada research suggests that rising import costs, including international shipping, were the primary drivers of food inflation in Canada last year.

Which specific food items saw the largest price increases?

Coffee prices increased by 31% and confectionery prices, like chocolate and candy, rose by 14% by the end of last year.

What measures is the Canadian government taking to address rising food costs?

The government plans to boost the GST credit for low- and moderate-income Canadians through the Canada Groceries and Essentials Benefit program.

Home / Business and Economy / Import Costs Fuel Canadian Food Inflation Surge

Import Costs Fuel Canadian Food Inflation Surge

4 Feb

•

Summary

Import costs nearly doubled food inflation in Canada last year.
Coffee and confectionery prices surged significantly due to shortages.
Government plans GST credit increase to aid affordability.

Import Costs Fuel Canadian Food Inflation Surge

Food inflation in Canada, excluding volatile fruits and vegetables, reached 3.1% last year. Bank of Canada research indicates that this surge was primarily driven by rising import costs, including international shipping expenses, exacerbated by a depreciating Canadian dollar in late 2024.

Specific items like coffee and confectionery experienced substantial price hikes; coffee rose by 31% and candy by 14% by the end of last year. These increases were attributed to supply chain disruptions, such as extreme weather events, and trade tariffs imposed by various countries.

In an effort to mitigate the impact of rising living costs, Prime Minister Mark Carney announced plans to enhance the GST credit for low- and moderate-income Canadians. This initiative, known as the Canada Groceries and Essentials Benefit, includes a one-time payment and a multi-year increase in the annual credit, projected to cost C$12.4 billion by 2030-31.

Statistics Canada data revealed that food prices climbed 6.2% between December 2024 and December 2025, marking the fastest pace in the G7. Households with the lowest incomes spent approximately 27% of their disposable income on food, compared to less than 5% for the highest-income quintile.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.

Import Costs Fuel Canadian Food Inflation Surge

4 Feb

•

Summary

Import costs nearly doubled food inflation in Canada last year.
Coffee and confectionery prices surged significantly due to shortages.
Government plans GST credit increase to aid affordability.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.