For the first time in 2025, food inflation in Canada has shown meaningful signs of easing. According to the latest Consumer Price Index (CPI) data released by Statistics Canada, the year-over-year food inflation rate dropped from 3.8% in April to 3.4% in May.

That shift may seem modest, but in the high-stakes world of food affordability, it’s a significant directional change — and long overdue.

Just weeks ago, Canada had the second-highest food inflation rate among G7 nations. Now we’ve moved down to fourth place. It’s a welcome reprieve for Canadian consumers heading into the costly summer months, when fresh food demand typically peaks.

Food inflation is not uniform across the country. New Brunswick currently leads the pack with the highest food inflation rate at 3.7%, while Manitoba boasts the lowest at 3%. Quebec sits at 3.1%, and Ontario at 3.6%. These regional differences reflect varying transportation costs, supply chain efficiencies, and even policy priorities.

At the category level, meat products and fruit continue to drive inflation higher. In the case of fruit, it’s largely a byproduct of ongoing substitution behaviours triggered by the informal boycott of American goods — a consumer protest that remains visible, though its intensity has waned compared to earlier in the year.

The real challenge, however, is not just the absolute level of food inflation........

© Castanet