Canada’s Grocery Prices Surge Again: Coffee Up 28%, Inflation Returns to the Dinner Table

Oct 28, 2025

Grocery prices in Canada rose 4% in September from a year earlier, according to Statistics Canada’s latest Consumer Price Index — signaling that food inflation is regaining momentum after a brief slowdown.

Coffee saw the steepest rise.
Over the past year, coffee prices jumped 28.6%, driven by poor weather in Brazil and Vietnam — the world’s key coffee producers — and the reintroduction of U.S. tariffs under President Trump.
Tim Hortons responded by raising its coffee prices by roughly 1.5% per cup earlier this month, citing higher import and dairy costs. The price surge highlights how global supply chain pressures are reaching Canadian households, making the morning coffee a symbol of broader inflation.

Protein staples are also climbing.
Fresh and frozen beef prices surged 14% year over year due to extreme weather across the U.S. plains, while chicken and pork prices rose 1.5% and 5.5%, respectively.
Seafood prices increased 5.5%, with canned salmon up 8.3% in a single month.
Nuts and seeds jumped 15.7%, partly due to a 50% U.S. tariff on Brazilian imports, while eggs and ice cream rose modestly by 1.4% and 1.9%.
These figures underline the combined effect of climate volatility, feed costs, and trade tension on global food supply chains.

Seasonal produce also fluctuated sharply.
Cucumber prices spiked 24.7% month-over-month in September as the harvest season ended and drought conditions in Ontario, Quebec, and Atlantic Canada strained crops. Lettuce also rose 9.3% during the same period.

Some good news: a few items got cheaper.
Berries fell 13% year-over-year, helped by Morocco doubling its blueberry exports to 1,900 tons worth $19 million, along with strong domestic harvests — total fruit output rose 5.2% to nearly 931,000 metric tons.
Prices for edible oils dropped 9%, while butter and cheese declined by 1.5% and 0.4%, respectively.

Still, the latest data confirm that inflation has once again claimed its seat at Canada’s dinner table.

AiF Insight:
Inflation quietly erodes wealth — not through market crashes, but through the rising cost of living.
Instead of watching savings lose value, investors can use structured, conservative strategies such as segregated funds and investment loans to protect and grow purchasing power over time.

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