Canadian households paid 4% more for groceries in September compared to last year, continuing a trend of rising food inflation since April 2024. August saw a 3.5% increase.

In September, the federal government ended 25% counter-tariffs on food imports, which had raised costs. This occurred as trade negotiations with the U.S. continue.

Food prices will remain high due to grocers favouring local and U.S. suppliers, a trend influenced by tariffs and "Buy Canadian" sentiment, despite two-thirds of Canadians preferring cheaper imported food, according to PwC Canada.

Melissa Lantsman rips the Liberals over the high cost of living and housing crisis facing Canadians.

"The cost of food has risen overall more than inflation every single month that this prime minister has been here," she says. pic.twitter.com/xbSxKu5WK4

— Rebel News (@RebelNewsOnline) September 15, 2025

Economists attribute high food costs to complex factors including tariffs, trade tensions with the U.S., regulatory burdens, logistical issues, supply chain bottlenecks, and limited retail competition. Tariffs on various U.S. food imports were in place until recently.

Food price inflation is also a global phenomenon, with prices rising faster than other goods in most countries. This reverses a decades-long downward trend in real global food prices, which began rising 25 years ago.

Extreme weather events, like last year's cold snap in B.C. and this year's drought in Western and Atlantic Canada, have severely impacted domestic food production, increasing prices for fruits, Alberta beef, and Nova Scotia blueberries.

Global factors like geopolitical conflicts (e.g., the Ukraine war), energy costs, inflation, and the weak Canadian dollar are also driving up food prices, according to the Food Price Report.

Experts cite international events like the Russian-Ukraine war as a driver of food inflation and the Canadian dollar's lesser value than the U.S. dollar.

MORE: https://t.co/wy7s0bRrTz pic.twitter.com/lIZpPr65pg

— Rebel News (@RebelNewsOnline) July 12, 2023

CIBC senior economist Andrew Grantham told the Canadian Press he was surprised by high food inflation, especially after U.S. retaliatory tariffs were removed in September, expecting a slight decrease.

Statistics Canada reports that persistent short supplies of beef and coffee are driving these elevated prices, caused by drier weather and tariffs.

In September, fresh vegetable prices rose 1.9% annually, reversing an August decline. Sugar and confectionery costs also surged, increasing 9.2% compared to 5.8% the previous month.

Grantham attributed rising grocery prices, especially for fresh produce, to environmental factors and a weak loonie. Annual inflation rose to 2.4% last month, up from 1.9% in August, according to StatCan.

Newly released data from Statistics Canada shows that food insecurity in this country has taken a horrifying leap, with a staggering 72% increase in just three years.

READ MORE: https://t.co/lz7kLYN1CZ pic.twitter.com/eg9Dd0eEC3

— Rebel News (@RebelNewsOnline) May 22, 2025

The Agri-Food Analytics Lab consistently highlighted grocery affordability as a key concern for Canadians, even before trade disputes and rising food costs, a warning largely disregarded by the Liberal government.

Rebel News earlier reported that grocery prices have surged 27.1% since July 2020. 

In 2025, Canadian families are expected to spend $16,833.67 on food, an increase of $801.56 from the previous year.

Economist Christina Caron states that global agricultural productivity growth has slowed since 2010, barely keeping pace with population growth. She attributes this to drought, heatwaves, and floods, causing food supply to fall behind demand and leading to food price inflation.

“What are the implications?” she writes. “Real food price increases are not going away. They can be expected to continue as long as the underlying environmental stressors persist.”

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