Food Prices Projected to Increase by Up to 5% in 2025
Food Prices in Canada Predicted to Climb 3-5% in 2025: Annual Report
Canadian households can expect food prices to rise by three to five percent in 2025, according to the 15th annual food price report released Thursday. The study, conducted by researchers from Dalhousie University, the University of Guelph, the University of Saskatchewan, and the University of British Columbia, highlights the growing strain on consumer budgets.
Key Findings
A typical Canadian family of four is projected to spend $16,833.67 on food in 2025, marking an increase of over $800 from the previous year. However, the rate of price increases will vary across different food categories.
Meat Prices
Meat prices are expected to rise four to six percent, driven by record-high beef costs. Years of drought in Western Canada have led to a shrinking cattle herd, with Canada’s total cattle population reaching its lowest point since 1987 as of July 1. Similarly, the U.S. has seen a sharp decline.
Contributing factors include higher feed costs, increased interest rates, and a reduction in industry participation. As a result, consumers may turn to alternative proteins, such as fish or pork, which are expected to see smaller price hikes.
Vegetables
Vegetable prices are predicted to climb three to five percent. A weakening Canadian dollar against the U.S. dollar is pushing up the cost of imported produce. Canada, the fifth-largest importer of fresh vegetables globally, sourced over $3.9 billion worth of fresh vegetables in 2023, with 60% coming from the U.S. Climate change is further compounding challenges, as extreme weather disrupts crop yields.
Restaurants
Dining out will also become pricier, with restaurant prices expected to increase by three to five percent. Rising operational costs—such as insurance, labor, and interest rates—are putting additional pressure on restaurant owners despite a slowdown in food inflation.
Other Food Categories
- Bakery and Dairy Products: Prices will rise modestly, by two to four percent.
- Fruit and Seafood: A smaller increase of one to three percent is anticipated.
The report underscores the combined effects of economic conditions, climate change, and global market dynamics on food costs in Canada.
