The average Canadian family will pay 3% to 5% more for food in 2025 compared to a year earlier, a new report shows.
Released Wednesday, the 15th edition of Canada’s Food Price Report said the average family of four is expected to spend $16,833.67 on food next year, an increase of up to $801.56 from a year earlier. Although food prices increased at a slower than anticipated rate in 2024 – with the current rate of increase at 2.8% - food affordability “remains a major concern for Canadians,” the report said.
The food price report is annual publication produced collaboratively by Dalhousie University, the University of Guelph, the University of British Columbia, and the University of Saskatchewan.
Several global factors impact food prices, the report said, including climate change, geopolitical conflicts, input and energy costs, inflation, currencies and the trade environment.
“Some impacts of adverse weather are starting to be reflected in food prices, such as more expensive meat, due to lengthy droughts in Canada’s beef-producing regions,” said Stuart Smyth, Campus Lead, University of Saskatchewan. “This has resulted in fewer cattle presently producing meat.”
Shutdowns and strikes at major railways and ports have and may continue to stall millions of dollars in daily trade, slowing domestic shipments and straining Canada’s export commitments. Canadian manufacturing and agricultural industries have been unable to secure a strong, stable workforce following COVID-19, further reducing volumes, the report said.
With an anticipated increase of between 4% and 6%, meat is projected to lead food prices higher in 2025, followed by vegetables with an increase of 3-5%. Bakery prices are forecast to rise between 2-4%, while fruits and seafood are likely to see the smallest gains, between 1% and 3%, the report said.
Amid rising food prices, Statistics Canada reported in April that in 2023, 22.9% of people in the 10 provinces lived in a food-insecure household. That means 8.7 million people, including 2.1 million children, were struggling to afford the food they need.
In March, the Food Banks Canada Hunger Count reported a new record high for food bank visits (2 million), which is a 90% increase compared to 2019.
