Canadian families brace for steep grocery bills in 2025, report warns

Canadians are set to face yet another challenging year at the grocery store, with food prices expected to rise faster than inflation for the third consecutive year, according to the 2025 Canadian Food Price Report.

A family of four will spend $16,833.67 on groceries next year, a jump of over $800 compared to 2024. The steepest increases are projected for fresh vegetables and meat, while fruit and seafood will see the smallest hikes.

The report, produced is a collaboration between the University of Guelph, the University of British Columbia, and the University of Saskatchewan. It attributes rising food costs to geopolitical instability, a weakening Canadian dollar, high energy costs, and climate change’s ongoing impacts on agriculture. These factors contribute to a concerning trend as more households struggle with food insecurity.

Food banks, already under immense strain, are bracing for further demand. Charities have reported record-breaking visits over the past year, and 2025 is expected to bring even more pressure.

The issue of high food costs prompted a boycott of the Loblaw group of companies as Canadians became frustrated with high food costs. The rising cost of living has also been a focus of criticism from the Conservative Party, with opposition leaders blaming the Liberal government’s carbon tax for driving up food and energy costs.

Despite the political debate, experts warn that structural issues in supply chains and global markets will continue to push grocery bills higher, leaving Canadian families to shoulder the burden.