Over three-quarters of the 2025 rise in food prices was due to higher import expenses.
A recent article published by the Bank of Canada sheds light on the rise in food prices in 2025. While politicians have debated the rise in food costs and some have eagerly sought to pin blame on domestic policies, the article indicates that 2.66 points of the 3.1 percentage point food inflation in 2025 was due to import costs:
“Prices for imported food began rising early in the year, partly due to the significant depreciation of the Canadian dollar in late 2024. For some items, prices increased exceptionally quickly. Notably, in December 2025, coffee and confectionery such as chocolates and candies were 31% and 14% higher, respectively, than they were in December 2024. Both items were affected by supply shortages—caused by issues such as extreme weather—and trade tariffs.
Domestically, cost pressures have been concentrated in the costs of live animals—amplified by drought and high costs for feed—and in intermediate food products. For example, retail prices for beef in December 2025 were 17% higher than they were in the same month in 2024. But these cost pressures have been partly offset by declining labour costs in the wholesale and retail sectors.”
You can read the full article here.
Spencer Fernando
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