Canadian families to pay nearly $1,000 more for groceries in 2026, report forecasts

December 4, 2025

RED FM News Desk

Canadian Families to Pay Nearly $1,000 More for Groceries in 2026, Report Forecasts Canadian families can expect their annual food bills to climb significantly higher in the coming year, according to the newly released 2026 Food Price Report. The annual study, prepared by Dalhousie University in collaboration with other universities across the country, was released today, projecting a substantial increase in grocery costs for average households.

The report estimates that an average family of four will spend close to $1,000 more on food in 2026. This increase will push the total annual food expenditure for a typical Canadian family to an estimated $17,571.79.

Dalhousie University food researcher Dr Sylvain Charlebois indicated that food prices are expected to increase by 4 to 6 per cent in 2026. This would translate to an average Canadian family of four spending approximately $994 more on groceries.

This predicted jump follows a trend of steep inflation, as food prices have already risen by a staggering 27 per cent over the last five years.

The continuous rise in food costs is being driven by a combination of multifaceted factors. These include persistent international trade issues, such as the impact of tariffs arising from trade disputes with the United States, which continue to exert upward pressure on prices.

Simultaneously, significant changes within the food manufacturing and retail sectors are impacting the efficiency and cost of the supply chain. Furthermore, fluctuations and costs in the labor market influence operating expenses across the entire food industry. Macroeconomic factors like policy changes and the fluctuating strength of the Canadian dollar also play a crucial role, particularly in relation to imported food costs. Finally, environmental shifts and extreme weather events attributed to climate change are increasingly affecting crop yields and production stability globally, contributing to instability and higher prices.

On a positive note, the report suggests some minor inflationary pressure relief may come from Canada strengthening ties with other international trading partners and the removal of almost all retaliatory tariffs on American imports.