{"id":69291,"date":"2026-01-29T13:07:12","date_gmt":"2026-01-29T13:07:12","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2026\/01\/29\/posthaste-miserable-about-food-prices-theres-a-good-reason-for-that\/"},"modified":"2026-01-29T13:07:12","modified_gmt":"2026-01-29T13:07:12","slug":"posthaste-miserable-about-food-prices-theres-a-good-reason-for-that","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2026\/01\/29\/posthaste-miserable-about-food-prices-theres-a-good-reason-for-that\/","title":{"rendered":"Posthaste: Miserable about food prices? There's a good reason for that"},"content":{"rendered":"
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\"Food
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Canadians are complaining about <\/p>\n

food prices<\/p>\n

and, according to economists, there is good reason for that. <\/p>\n

Grocery prices in this country have soared 30 per cent since 2019, rising at almost double the pace of the pre-pandemic trend. <\/p>\n

To put that in perspective, the average Canadian is now spending over $1,600 more for groceries than before the pandemic, said <\/p>\n

Leslie Preston, senior economist at Toronto Dominion Bank. <\/p>\n

It\u2019s a problem that stands out on the world stage. Among advanced nations, Canada is one of three countries that has been particularly plagued by stubborn food inflation, said Capital Economics. <\/p>\n

Canada, Japan and the United Kingdom have all seen food\u2019s contribution to overall inflation climb much higher than historical averages, said Capital\u2019s senior global economist Ariane Curtis. <\/p>\n

In Canada, food inflation runs at about 4.2 per cent, compared with 2.6 per cent and 2.4 per cent in the U.S. and eurozone. That\u2019s about twice the rate of <\/p>\n

overall inflation. <\/p>\n

And we\u2019re feeling it. In the <\/p>\n

Bank of Canada\u2019s<\/p>\n

recent consumer expectations survey, respondents said they thought inflation was around 4 per cent, when actually it\u2019s 2.3 per cent. <\/p>\n

Food prices, which have a very visible and immediate impact on Canadians\u2019 wallets, factor heavily in their perceptions of inflation, say economists. <\/p>\n

Ottawa responded to Canadians\u2019 complaints this week by <\/p>\n

boosting the GST tax credit<\/p>\n

, now renamed the Canada Groceries and Essentials Benefit, by 25 per cent for the next five years, and adding a one-time payment this year. <\/p>\n

TD\u2019s Preston said that\u2019s appropriate because the federal government\u2019s retaliatory tariffs on the United States helped drive up food prices in recent months. The tariffs were applied in March and then lifted in September. <\/p>\n

But that\u2019s not the only culprit. Energy prices, labour costs, a weak Canadian dollar and adverse weather have all played a role, said Preston. <\/p>\n

America and Canada had been tracking pretty close on food inflation, but over the past year Canada has run ahead. Canadians feel this even more than Americans because groceries make up a larger share of their budgets , said Preston. <\/p>\n

Lower income families, who spend about 14 per cent of their budget on food, feel the pinch the most. <\/p>\n

While food inflation in most developed economies is expected to cool to 2 per cent by the end of this year, Capital Economics can\u2019t say the same for Canada. <\/p>\n

Rising producer prices and the lingering effects of drought should keep Canadian food inflation at about 4 per cent, said Curtis. <\/p>\n

\u201cSo while lower food inflation will contribute to overall disinflation in the U.K. and Japan, it will remain a key factor pushing up overall inflation in Canada next year.\u201d <\/p>\n

\n

\u00a0Sign up here to get Posthaste delivered straight to your inbox.<\/strong><\/em> <\/p>\n

\n


\"\"<\/strong> <\/p>\n

\"\"<\/p>\n

Canada is its own worst enemy when it comes to internal trade, according to the <\/p>\n

International Monetary Fund.\u00a0 <\/p>\n

The IMF said this week that domestic trade barriers between provinces amount to a nine per cent tariff and lifting these could boost Canada\u2019s gross domestic product by seven per cent. <\/p>\n

As its chart shows, smaller and more remote provinces in Atlantic Canada and northern territories have the most to gain as their companies and workers win access to larger markets. <\/p>\n

But all regions would benefit from improved productivity, more efficient allocation of capital and labour, stronger competition and better scale for high-performing firms, said the IMF. <\/p>\n

How effectively Canada can mobilize its domestic market is just as important in shaping its future as is expanding trade globally, said report authors Federico J. D\u00edez and Yuanchen Yang. <\/p>\n

\u201cTurning thirteen economies into one is no longer just an aspiration \u2014 it is an economic imperative.\u201d <\/p>\n

\n

\"\"<\/p>\n

Today\u2019s Data:<\/strong><\/p>\n

International merchandise trade, United States trade balance, wholesale trade, factory and durable goods orders <\/p>\n

Earnings:<\/strong><\/p>\n

Rogers Communications Inc., Apple Inc, Visa Inc., Mastercard Inc., Brookfield Infrastructure Partners, Blackstone Inc. <\/p>\n

\"\"<\/strong> <\/p>\n

\"\"<\/p>\n

\u00a0 <\/p>\n

<\/figure>\n
\n

\"\"<\/strong> <\/p>\n

    \n
  • Bank of Canada holds interest rate at 2.25%, but is \u2018monitoring risks closely\u2019<\/li>\n
  • Are Shell, Mitsubishi trying to pull out of LNG Canada? Probably not, analysts say<\/li>\n
  • Chances of market correction \u2018substantially higher\u2019 than people think, says Ed Devlin<\/li>\n<\/ul>\n

    \"\" <\/p>\n

    An Ottawa couple hoping to retire slightly early wonder if they should defer their Canada Pension and Old Age Security until age 70. The problem is their defined benefit pensions fall short of their target income. <\/p>\n

    Find out what Family Finance recommends. <\/p>\n

    \n

    <\/span>
    \n\"\"<\/p>\n

    Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on\u00a0 one of the country\u2019s most important sectors. <\/p>\n

    Sign up here. <\/p>\n

    \n
    Are you worried about having enough for retirement? Do you need to adjust your portfolio? Are you starting out or making a change and wondering how to build wealth? Are you trying to make ends meet? Drop us a line at\u00a0<\/span>wealth@postmedia.com<\/span>\u00a0with your contact info and the gist of your problem and we\u2019ll find some experts to help you out while writing a Family Finance story about it (we\u2019ll keep your name out of it, of course).<\/span><\/div>\n
    \n

    McLister on mortgages<\/h2>\n

    Want to learn more about mortgages? Mortgage strategist Robert McLister\u2019s <\/p>\n

    Financial Post column <\/p>\n

    can help navigate the complex sector, from the latest trends to financing opportunities you won\u2019t want to miss. Plus check his <\/p>\n

    mortgage rate page<\/p>\n

    for Canada\u2019s lowest national mortgage rates, updated daily. <\/p>\n

    \n

    Financial Post on YouTube<\/h2>\n

    Visit the Financial Post\u2019s <\/p>\n

    YouTube channel<\/p>\n

    for interviews with Canada\u2019s leading experts in business, economics, housing, the energy sector and more. <\/p>\n

    \n

    Today\u2019s Posthaste was written by Pamela Heaven with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.<\/em> <\/p>\n

    Have a story idea, pitch, embargoed report, or a suggestion for this newsletter? Email us at\u00a0<\/p>\n

    posthaste@postmedia.com<\/p>\n

    . <\/p>\n

    \n
      \n
    • Will Carney\u2019s GST credit top-up help Canadians with the rising cost of groceries?<\/li>\n
    • Retirement becoming ‘distant dream’ for more Canadians<\/li>\n<\/ul>\n

      Bookmark our website and support our journalism:<\/strong> Don\u2019t miss the business news you need to know \u2014 add\u00a0financialpost.com\u00a0to your bookmarks and sign up for our newsletters here<\/em> <\/p>\n

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      Posthaste: Miserable about food prices? There's a good reason for that<\/a>
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      2026-01-29 13:07:12<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

      Canadians are complaining about food prices and, according to economists, there is good reason for that. Grocery prices in this country have soared 30 per cent since 2019, rising at…<\/p>\n","protected":false},"author":2,"featured_media":69292,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/smartcdn.gprod.postmedia.digital\/financialpost\/wp-content\/uploads\/2023\/01\/fp-posthaste-LOGO-01132023.jpg","fifu_image_alt":"","footnotes":""},"categories":[31],"tags":[],"class_list":["post-69291","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"_links":{"self":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/69291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/comments?post=69291"}],"version-history":[{"count":0,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/posts\/69291\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media\/69292"}],"wp:attachment":[{"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/media?parent=69291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/categories?post=69291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pantheregroup.com\/api\/wp\/v2\/tags?post=69291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}