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Canadian households should brace for another year of rising food costs, with the latest Canada’s Food Price Reportforecasting that grocery bills will climb again in 2026. The annual report – released by Dalhousie University alongside researchers from universities nationwide – estimates that the average family of four will spend an additional $1,000 next year just to buy the same amount of food.

With inflation moderating but still lingering across supply chains, food prices are expected to rise between 4 and 6 percent, continuing a trend that began several years ago and placing growing pressure on household budgets.

Food Prices Expected to Continue Rising in 2026

Now in its 16th year, Canada’s Food Price Report analyzes national and global trends to project changes in food categories. Despite efforts to stabilize supply costs, researchers say structural challenges – from climate-related impacts to global logistics and production expenses – will drive food price inflation higher.

Dr. Sylvain Charlebois, professor and senior director at Dalhousie’s Agri-Food Analytics Lab, warns that even modest percentage increases translate to major impacts for families already struggling with the cost of living.

Key findings from the 2026 Food Price Report:

• Food prices are expected to rise 4 to 6 percent
• A family of four will spend about $1,000 more next year on groceries
• Multiple food categories – including vegetables, baked goods, and meats – are likely to see the sharpest increases
• Household budgets will continue to be strained despite broader economic cooling

“With the average family of four, we’re expecting them to spend about $1,000 more next year to buy the exact same amount of food,” Charlebois explained in the report.

What’s Driving the Price Increases?

Several ongoing pressures continue to affect food supply chains in Canada:

1. Climate-Related Weather Events

Global droughts, flooding, and unstable growing conditions are reducing crop yields, driving up production and import costs.

2. Higher Transportation and Logistics Costs

Fuel prices and shipping disruptions continue to influence food distribution.

3. Labour Shortages in Agriculture

Worker shortages increase production costs, eventually passed down to consumers.

4. Persistent Supply Chain Disruptions

Even with improvements since the pandemic, supply chains remain vulnerable to shocks.

These factors compound over time, making groceries more expensive even when inflation cools in other sectors.

What This Means for Canadian Families

With wages not rising at the same pace as food prices, more households are expected to change their shopping habits in 2026. Families may shift to more store brands, reduce discretionary items, or prioritize budget-conscious retailers.

The report emphasizes that food insecurity will remain a growing challenge unless significant policy action is taken to support affordability and stabilize supply systems.

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References (APA Format)

Charlebois, S., Dalhousie University Agri-Food Analytics Lab. (2025). Canada’s Food Price Report 2026. Dalhousie University. https://www.dal.ca

Straight Outta the 6ix TV. (2025, December). Canadian Families Expected to Pay $1,000 More for Groceries in 2026[Instagram post]. https://instagram.com/straightouttathe6ixtv

CBC News. (2025). Food prices set to rise again in 2026, report warns. https://www.cbc.ca