Canada’s Inflation Holds at 2.2% While Grocery Prices Surge to Two-Year High
Ottawa — Canada’s annual inflation rate remained steady at 2.2 per cent in November, unchanged from October.
Overall inflation stayed moderate, but food prices climbed sharply, affecting Canadian households.
Grocery prices rose 4.7 per cent year-over-year, marking the largest increase in nearly two years.
Fresh produce, prepared foods, beef, and coffee contributed most to the higher costs.
Why Grocery Prices Are Rising
Food price growth outpaced most other components of the Consumer Price Index.
Supply pressures, climate-related crop issues, and transportation costs pushed prices higher.
Households are feeling the impact, especially during the holiday season.
Experts warn that food inflation may continue into early 2026 if supply pressures persist.
Inflation Beyond Food
Despite rising grocery costs, other major expenses grew more slowly or stabilized.
Gasoline prices rose slightly month-to-month but remain lower than the previous year.
Shelter and travel costs increased modestly but did not push overall inflation higher.
Core inflation, which excludes food and energy, showed a slight easing trend.
The Bank of Canada recently held its policy rate steady.
Officials indicated that broad price growth remains manageable and within target ranges.
Impact on Canadians
Steady inflation overall provides some relief, but grocery price increases continue to strain budgets.
Many families notice the rising cost of food more than other living expenses.
Rising grocery costs now account for a significant portion of household spending pressures.
Experts note that food prices often adjust more slowly than general inflation trends.
Outlook Ahead
While overall inflation remains stable, Canadians face uneven experiences due to high food prices.
Analysts expect grocery inflation to remain elevated through early 2026.
The trend highlights that stable headline inflation does not always mean lower everyday costs.
For many households, rising food prices remain the most visible and pressing financial challenge.
