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Canada's Food Inflation Hits 7.3% in January Driven by Tax and Supply Costs
Food inflation rose to 7.3% year-over-year in January due to a 12.3% increase in restaurant meal costs and the end of a federal sales tax holiday, Statistics Canada reported.
- On Feb. 17, 2026, Statistics Canada reported headline inflation eased while food inflation accelerated in January, increasing pressure on consumers in Ottawa.
- StatCan said the federal 'tax holiday' ending in January 2025 distorted comparisons, with restaurant meals rising over 10% last month, driven by price changes.
- Grocery prices rose 4.8 per cent in January, slowing from five per cent in December, and Bank of Canada senior economist Olga Bilyk linked grocery inflation to supply‑chain and import costs after a six‑month lag.
- The Bank of Canada will get another look at inflation readings for February before deciding on March 18, with LSEG Data & Analytics showing just over 10 per cent odds of a rate cut.
- On Parliament Hill, politicians are pressing for responses to rising food costs, with Preston saying `These things take time to show up at the retail level so we expect to increasingly see cooler grocery inflation over the year ahead.
18 Articles
18 Articles
Food inflation spiked 7.3% in January. Here’s what’s driving the increase
Statistics Canada reported an easing in the headline inflation rate Tuesday but a jump in the pace of food inflation amid tax changes and lingering pressures at the grocery store continue to put the squeeze on consumers.
Bowen Island Undercurrent
Food inflation spiked 7.3% in January. Here's what's driving the increase
StatsCan: Inflation cools overall, but grocery prices accelerate to 7.3%
Statistics Canada says Canada’s overall inflation rate eased slightly in January, but rising food costs continue to put pressure on household budgets. The agency reported Tuesday that the annual inflation rate dipped to 2.3 per cent, down from 2.4 per cent in December and slightly below economists’ expectations. The decline was largely driven by lower gas prices, which were down 16.7 per cent year-over-year, and easing shelter costs as rent grow…
Canadian food inflation soared to 7.3 % in January 2026
Farmers Forum staff OTTAWA — Canadian food prices in January 2026 soared 7.3 % over January 2025, according to Statistics Canada, a figure that includes food purchased both at grocery stores and at restaurants. It’s the second month in a row that Canada has posted the highest year-over-year food inflation rate in the G7, according […]
Although the inflation rate in Canada fell to 2.3%, the rate in Quebec was still the lowest at 3% in January 2026, according to Statistics Canada data. This was a 0.2% decrease compared to December 2025, which was 3.2%. It was the rising food prices that added an inflationary pressure on the cost of living in the past year, which increased on average by 7.3% over the past year. YouTube X
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