An annual report on Canadian food prices was released jointly by Dalhousie University and other Universities. The high prices of food are some of the big issues among Canadians as the living cost is increasing in the country.
Now, Canada’s Food price report for 2025 predicts a 3% to 5% rise in food prices which could increase the problem for many Canadians. Canadians wondering about the food price hike and its impact can get the full details here.
Canada Food Prices 2025 Predictions
On 5 December 2024, the 15th edition of Canada’s Food Price Report was published 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 analysis tools to predict the 2025 food prices.
According to the report, next year Canadians can expect more pressure on their daily food items as the report forecasts a jump in food prices in 2025.
The biggest hike in the food items will be seen in vegetables and meat items. The report predicts around a 3 to 5% hike in food prices next year which means Canadians will face a difficult year.
Last year’s report predicted a hike between 2.5% to 4.5% for 2024 and as per the CPI data, the current food price rate is around 2.8%. The food price range was within or below the predicted range, hence we can believe the forecast. The report estimates the food prices based on individual food expenditure, age, and gender.
Canada Food Prices 2025 Province-wise Prediction
The annual Canada Food Price Report pays close attention to the food prices, behavior of consumers, grocery item expenditure, and other factors to determine the food price in the country. With the 2025 anticipation of a 3% to 5% price prediction, Canadians can continue to feel the food problems.
The report has also suggested the change in food prices for provinces to provide an estimate of food price changes compared to 2024. Canadians can check the province-wise food price forecast for 2025 below:
Province | 2024 Changes | 2025 Prediction |
Alberta | 3.2% | Below National Average |
Manitoba | 3.3% | Below National Average |
British Columbia | 2.8% | Below National Average |
New Brunswick | 3.1% | Above National Average |
Nova Scotia | 2.7% | Above National Average |
Newfoundland and Labrador | 3.8% | Above National Average |
Ontario | 3.1% | Below National Average |
Prince Edward Island | 3.1% | Average |
Saskatchewan | 2.8% | Below National Average |
Quebec | 1.8% | Above National Average |
What could be the reason for Canada’s Food Prices hike in 2025?
The annual report has also looked into factors that will contribute to the food prices hike in the country, such as:
- The prices of meat and beef have increased because the drought in the West has caused cattle producers to decrease the size of their herds. Over the years, the beef price has increased due to these reasons.
- Climate change has affected the production of crops and livestock all over the globe, which has been challenging for farmers and others. The lower crop production and higher demand have increased the prices of food over the years.
- The Canadian dollar is getting lower which may reduce the purchasing power of Canadians and the price of imported food items would also hike in Canada.
- Another aspect that the report suggested is Trump’s win in America as Trump’s campaign revealed he would introduce some tariffs on imports into the US and other policies to reduce the cost for farmers. The happening of the US will definitely affect Canada’s economic conditions as well.
Impact of Canada Food Price Hike in 2025
The annual report has suggested the impact of food price hike in 2025 on Canadian households and the nation, let’s explore each one of them:
- The report suggests a family of four will spend around $16,833.67 on food which increases from the 2024 rate by $801.56. The monthly spending of the four-member family is $66 extra than the current year.
- As the prices of meat and vegetables are expected to rise, Canadians can expect a hike in restaurant and diners’ prices as well.
- With a reduction in livestock and the import of goods, Canadians can expect high prices in bakery and dairy products as well.
- The report expected the food price to increase slower than the anticipated range, so people can expect a hike in prices gradually.
- With the increase in food prices, the purchasing power of citizens will be affected, which will eventually affect the economy.
The 3- 5% hike in food prices is concerning and also warns Canadians of the difficult time ahead. People can take a look at the report to understand the food prices in Canada in the next year and to make better food purchase decisions.