Grocery retailer warns higher food costs expected soon

Despite overall inflation cooling to 1.7% in April, Statistics Canada reports grocery price inflation rose to 3.8% last month.

 

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Loblaw anticipates continued grocery price increases in Canada due to U.S. President Donald Trump's tariffs, according to BlogTO.

The retailer’s May food inflation report indicates upcoming price increases on numerous everyday grocery items across its banners (Loblaws, No Frills, Real Canadian Superstore), though the company suggests the situation could have been worse for consumers.

In March, when the Canada-U.S. trade war started, the grocery giant informed shoppers that food prices wouldn't be immediately affected.

Temporary retaliatory tariff suspensions, combined with a stable but low Canadian dollar, have led Loblaw to believe that a significant or prolonged period of high food inflation is now less likely.

However, numerous imported U.S. food items like produce, rice, pasta, dairy, and coffee, alongside health and wellness products such as soap, shampoo, and cosmetics, still face tariffs.

Last month, Loblaw reported that Canadian counter-tariffs had a minimal impact on March food prices due to existing inventories, but higher prices are expected on shelves soon.

"In a conventional grocery store, there can be upwards of 80,000 items, and consumers can expect tariff-related increases of approximately 6,000, about half of which are food," said the retailer, who notes that most of these products have a non-U.S. alternative available.

Grocers are countering tariff effects by sourcing alternative suppliers and informing customers via labeling. Manufacturers are also adapting supply chains to bypass the U.S. to keep prices down.

“While the tariff situation might be improving between the U.S. and other countries, that’s not yet the case here in Canada,” reads a May 14 LinkedIn post from Per Bank, Loblaw's CEO.

“In fact, we’ll be facing a large wave of tariff-related increases in the weeks ahead.”

Despite overall inflation cooling to 2.3% in March, Statistics Canada reports grocery price inflation rose to 3.2% in March and further to 3.8% last month, contrasting with the lower overall inflation rate of 1.7%.

StatsCan reported that year-over-year price increases were largely driven by fresh vegetables (up 3.7%), fresh or frozen beef (up 16.2%), and coffee and tea (up 13.4%). Prices for takeout also rose at a faster rate in April than March.

Even before trade disputes, the Liberal government failed to address rising food costs, exacerbating household financial stress. The Agri-Food Analytics Laboratory has repeatedly stated that grocery affordability is a major concern for Canadians.

A December 5 report predicted 2025 food inflation would not exceed 5%, when it was at 2.8%. “Looking ahead to 2025 we are expecting a family of four with the same demographic makeup to spend $16,833.67,” it said.

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

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COMMENTS

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  • Fran g
    commented 2025-06-04 18:09:09 -0400
    I agree Susan and yes it will be healthier
  • susan gerbes
    commented 2025-05-30 20:04:58 -0400
    I have protested and shunned Loblaws and Sobey’s for years. I can get simple items, or large cost items cheaper at Giant Tiger or Walmart….people need to shop comparatively, not blindly. If people stop shopping at Loblaws or Sobey’s then prices may come down….? Carnage will find a way to prop them up, though…..
  • Susan Ashbrook
    commented 2025-05-30 01:29:10 -0400
    The globalists use food as a weapon. He who controls the food supply, controls the masses. We need to start growing more of our own and become more self sufficient. Share/barter/exchange with your neighbours. Heck, it might even be healthier!
  • Bernhard Jatzeck
    commented 2025-05-29 19:47:07 -0400
    Food prices will increase soon. Next, on Action News at 11, scientists conclude that water is wet.
  • Bruce Atchison
    commented 2025-05-29 19:28:49 -0400
    Every time we vote, the government gets in. Carney and his crew never hurt but we feel price rises so easily. And it’s Liberal voters who helped Carney to continue ruining Canada.