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Dalhousie University and other universities have jointly published an annual report on food prices in Canada. High food prices are one of the major concerns among Canadians as the cost of living in the country rises.
Canada’s Food Price Report 2025 projects food prices to rise 3% to 5%, which could add to the problem for many Canadians. Canadians wondering about the food price hike and its impact can find all the details here.
Canadian food price forecasts for 2025
On December 5, 2024, the 15th edition of the Canadian Food Price Report was released in partnership with the University of Saskatchewan, Dalhousie University, the University of British Columbia and the University of Guelph.
The research team used machine learning, historical data sources and predictive analytics tools to predict food prices for 2025.
Next year, Canadians can expect more pressure on their daily groceries as the report predicts a spike in food prices in 2025, according to the report.
The biggest increase in food items will be recorded by vegetables and meat items. The report predicts food prices will rise by about 3 to 5% next year, meaning Canadians will face a tough year ahead.
Last year’s report predicted an increase of between 2.5% to 4.5% for 2024, and according to CPI data, the current rate of food prices is around 2.8%. The food price range was within or below the forecast range, so we can trust the forecast. The report estimates food prices based on individual food expenditures, age and gender.
Canadian Food Price Forecast to 2025 by Province
The annual report on food prices in Canada pays close attention to food prices, consumer behavior, grocery spending and other factors that determine food prices in the country. With prices expected to rise by 3% to 5% in 2025, Canadians may continue to experience food shortages.
The report also proposed food price change for the provinces to provide an estimate of food price changes compared to 2024. Canadians can check the 2025 provincial food price forecast below:
| Province | Changes in 2024 | Forecast for 2025 |
| Alberta | 3.2% | Below the national average |
| Manitoba | 3.3% | Below the national average |
| British Columbia | 2.8% | Below the national average |
| New Brunswick | 3.1% | Above the national average |
| Nova Scotia | 2.7% | Above the national average |
| Newfoundland and Labrador | 3.8% | Above the national average |
| Ontario | 3.1% | Below the national average |
| Prince Edward Island | 3.1% | Average |
| Saskatchewan | 2.8% | Below the national average |
| Quebec | 1.8% | Above the national average |
What could be the reason for the increase in food prices in Canada in 2025?
The annual report also considered the factors that will contribute to the rise in food prices in the country, such as:
- Meat and beef prices rose as a drought in the West forced ranchers to reduce herd sizes. Over the years, the price of beef has risen due to these reasons.
- Climate change has affected crop and livestock production around the world, challenging farmers and others. Lower crop production and higher demand have pushed up food prices over the years.
- The Canadian dollar is falling which could reduce the purchasing power of Canadians and the prices of imported food items would also increase in Canada.
- Another aspect that the report suggests is Trump’s victory in America as Trump’s campaign revealed that he would impose some tariffs on US imports and other policies to reduce costs for farmers. Events in the US will definitely affect economic conditions in Canada as well.
Impact of rising food prices in Canada in 2025
The annual report suggests the impact of food price increases in 2025 on Canadian households and the nation, let’s explore each:
- The report suggests a family of four will spend about $16,833.67 on food, up $801.56 from the 2024 rate. The monthly consumption of a family of four is $66 higher than the current year.
- As meat and vegetable prices are expected to rise, Canadians can also expect prices in restaurants and diners to rise.
- Along with reduced livestock and commodity imports, Canadians can expect high prices for both bakery and dairy products.
- The report expects the price of food to rise more slowly than the forecast range, so people can expect a gradual increase in prices.
- The increase in food prices will affect the purchasing power of citizens, which will eventually affect the economy.
A 3-5% increase in food prices is worrisome and also warns Canadians of tough times ahead. People can view the report to understand food prices in Canada over the next year and make better food purchasing decisions.
