Canadians are increasingly accepting higher grocery prices as the new normal while developing strategies to cope with food inflation. The average household now spends about $600 a month on food, significantly impacting budgets across the country.
As of early Tuesday, Canada’s food inflation rate stands at about two percentage points higher than general inflation. This rate is the highest among G7 countries, causing many families to rethink their spending.
A family of four with growing kids will likely spend around $17,000 this year on food. This dramatic increase has forced about a third of respondents in recent surveys to draw on savings or borrow money to cover these rising costs.
Data from Dalhousie University indicates that consumer behavior is shifting. In fall 2024, 40.3% of Canadians believed food prices had risen by more than 10% over the previous year. However, this figure dropped to 29.7% by spring 2026, suggesting a change in perception.
Many Canadians are adapting by seeking sales and discounts. As of spring 2026, about 44% of respondents reported relying on promotions to manage their grocery expenses effectively.
Despite these adjustments, fewer Canadians anticipate food inflation above 10% in the coming year. Most expect increases in the five to seven percent range, indicating a potential stabilization in grocery pricing.
According to Sylvain Charlebois from Dalhousie University, “Overall, the data suggests that while food inflation is still widely felt, Canadians increasingly believe price increases are moderating.” This perspective reflects a gradual acceptance of new price levels.
The grocery price inflation rate was notably higher at 4.4% in March. As consumer habits continue evolving, it remains uncertain how long these price levels will persist or if further increases are on the horizon.