Grocery Prices Climb Sharply as Overall Inflation Holds Steady

Canadian grocery bills rose sharply in November, adding fresh strain to household budgets just as many families prepared for the holiday season. According to the latest Consumer Price Index (CPI) released by Statistics Canada, food prices increased an average of 4.7 per cent compared with November of last year, marking the largest jump in food inflation since December 2023.
The increase came even as overall inflation remained unchanged. Statistics Canada reported that headline inflation held steady at 2.2 per cent, the same rate recorded in October. While that figure suggests broader price pressures have cooled, the experience at grocery store checkouts told a very different story for many Canadians.
Statistics Canada noted that food inflation accelerated from 3.4 per cent in October to 4.7 per cent in November, driven by rising costs in several key categories. Fresh fruit saw notable increases, particularly berries, along with higher prices for beef and coffee.
“The Consumer Price Index held steady in November, but this plateau won’t translate into much relief for Canadian wallets,” said Shannon Terrell, a personal finance expert at NerdWallet Canada. “Grocery aisles continue to tell a vastly different story, as anyone who has purchased beef, coffee or fresh fruit in recent months can attest.”
Terrell added that the timing of the increase has been especially difficult for families. “When simply putting a holiday meal on the table feels like an insurmountable budget hurdle, Canadians will need to use every tool at their disposal to make the holiday magic happen.”
Statistics Canada attributed the rise in beef prices partly to lower cattle inventories across North America, a supply constraint that has pushed wholesale and retail prices higher. Coffee prices were influenced by a combination of poor weather in major growing regions and trade-related pressures in the United States that affected global supply chains.
Senior economist Claire Fan of the Royal Bank of Canada said the rise in food inflation reflected several overlapping factors. “The increase in food inflation was driven by a combination of supply-side constraints, including severe weather conditions,” she said. Fan also noted that while Canadian importers may not directly pay certain U.S. tariffs, higher costs can still be passed along through international supply chains, particularly for processed goods such as refined coffee.
In mid-November, the United States removed tariffs on some food-related products, including coffee and beef, after consumers raised concerns about rising prices. However, economists cautioned that relief may take time to reach store shelves.
Despite higher grocery costs, inflation pressures eased in other areas of the economy. Gasoline prices fell 7.8 per cent in November compared with a year earlier, helping offset some of the food-related increases. Statistics Canada also reported lower hotel prices in parts of the country, particularly in Ontario.
Last week, the Bank of Canada opted to leave its key interest rate unchanged, citing encouraging signs in inflation, employment, and gross domestic product. However, concerns about household affordability remain. A separate report released earlier this month projected that Canadian consumers could pay as much as $1,000 more for groceries in 2026 if current trends continue.
As Canadians head deeper into winter, the contrast between cooling headline inflation and rising food prices underscores a central challenge facing policymakers and households alike: while inflation may be stabilizing on paper, everyday essentials continue to stretch family budgets across the country.